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    Home»Technology»How airline fees have turned baggage into billions
    Technology

    How airline fees have turned baggage into billions

    Team_AIBS NewsBy Team_AIBS NewsJune 5, 2025No Comments5 Mins Read
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    Sam Gruet

    Enterprise reporter

    Getty Images Luggage at an airportGetty Photos

    Airways within the US alone made $7.27bn from check-in baggage charges final yr

    With Air Canada and Southwest the newest airways to cost passengers for check-in baggage, the ballooning price of such ancillary or “junk charges” is frightening anger amongst politicians and shopper teams. On the identical time, gross sales of suitcases sufficiently small for passengers to tackle the airplane as hand baggage are booming.

    Standing exterior Toronto’s downtown airport, Lauren Alexander has flown over from Boston for the weekend. She describes such further fees as “ridiculous”.

    “It seems like a trick,” says the 24-year-old. “You purchase the ticket, you suppose it may be inexpensive, then you must pay $200 (£148) additional [to bring a suitcase].”

    To keep away from the price, Ms Alexander as a substitute travelled with a small backpack as hand baggage.

    Sage Riley, who’s 27, agrees, telling the BBC, “It may be expensive.”

    There was a time when checked luggage, seat choice and your meals all got here as customary on industrial flights. However that each one modified with the rise of the price range airways, says Jay Sorensen of US aviation consultancy IdeaWorks.

    It was in 2006 when UK low-cost service FlyBe grew to become what’s believed to be the world’s first airline to begin charging passengers to check in bags. It charged £2 for a pre-booked merchandise of bags, and £4 if the client hadn’t paid prematurely.

    Different price range carriers then shortly adopted go well with, with the so-called flag carriers or established airways then additionally doing so, at the very least on shorter flights.

    In 2008 American Airways grew to become the primary US airline to cost a price, $15, for the primary checked bag on its home routes.

    Mr Sorenson says such conventional airways felt that they had no selection after they “started to understand that the low-cost carriers have been offering very important competitors”. He provides: “They felt they needed to do one thing to satisfy that.”

    Getty Images A SouthWest aircraftGetty Photos

    US service Southwest now fees passengers to test in luggage on home flights

    Quick ahead to at the moment, and US airways alone made $7.27bn from check-in baggage charges final yr, according to federal figures. That’s up from $7bn in 2023, and $5.76bn in 2019.

    Little surprise then that extra of us are attempting to only take carry-on. Kirsty Glenn, managing director of UK baggage agency Antler, confirms that there’s an ongoing surge in demand for small suitcases that meet airline dimension limits for carry-on baggage.

    “We’ve seen big spikes in searches on-line and on our web site,” she says. Describing a brand new small-dimension case her firm launched in April, Ms Glenn provides: “Testomony to the pattern of solely travelling with hand baggage, it is bought like loopy.”

    On the identical time, social media content material about journey packing “hacks” and baggage that meets airways’ carry-on measurement measurements, have soared in keeping with journey journalist Chelsea Dickenson. She makes this content material for TikTok.

    “Social media has actually propelled this concept of needing a bag that matches the bags allowance necessities, says Ms Dickenson. “It is grow to be a core a part of the content material that I create and submit on social media.”

    Ms Dickenson, whose social media following has ballooned to shut to 1,000,000 followers, provides that her baggage movies have grow to be a “core a part of the content material” she creates.

    “It blows my thoughts,” she says. “I might spend weeks and weeks researching an enormous journey, and the ensuing movies is not going to come near doing in addition to me going and shopping for an inexpensive suitcase, taking it to the airport, testing it in a kind of baggage sizes and reporting again.”

    The general international price of all airline additional charges, from baggage to seat choice, shopping for wifi entry, lounge entry, upgrades, and food and drinks, is expected to reach $145bn this year, 14% of the sector’s whole revenues. That is in keeping with the Worldwide Air Transport Affiliation, which represents the business. This compares with $137bn final yr.

    These numbers have caught the eye of some politicians in Washington, and final December airline bosses have been grilled earlier than a senate committee. It was a Democrat senator who used the time period “junk fees”.

    He desires the federal authorities to overview such prices and probably effective airways. We requested the US Division of Transportation for a remark, however didn’t get a response.

    Chelsea Dickenson Travel journalist Chelsea Dickenson at an airportChelsea Dickenson

    Chelsea Dickenson posts movies the place she checks if luggage are beneath airline’s measurement limits

    But when having to pay for check-in wasn’t sufficient, a rising variety of airways at the moment are charging for hand baggage. For instance, Irish price range airline Ryanair will solely assist you to carry a small bag that matches underneath the seat in entrance of you free of charge. If you wish to take a much bigger bag or suitcase to go within the overhead locker that can price you from £6.

    Different European airways that now have comparable fees for hand baggage are Easyjet, Norwegian Airways, Transavia, Volotea, Vueling, and Wizzair.

    This has irritated pan-European shopper group Becu (The European Client Organisation), which final month filed a criticism with the European Fee.

    Becu cites a 2014 EU Courtroom of Justice ruling, which mentioned “carriage of hand baggage can’t be made topic to a worth complement, supplied that it meets cheap necessities when it comes to its weight and dimensions, and complies with relevant safety necessities”.

    Nevertheless, what determines “cheap necessities” continues to be a gray space in want of an official ruling.

    There can, nevertheless, be a distinct means of doing issues, as proven by Indian airline IndiGo. Its boss Pieter Eibers says that it doesn’t cost for check-in baggage.

    “The whole philosophy right here is completely different,” he says. “We do not need lengthy traces, and limitless debates at gates in regards to the weight of bags. We have no of that. We flip our planes round in 35 minutes.”

    Learn extra international enterprise tales



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