Newsletters

Here’s How Much Airlines Make from Baggage Fees

Mia Nakaji Monnier
Mia Nakaji Monnier
Mia Nakaji Monnier is a freelance writer and former weekend editor at Apartment Therapy. She lives in Los Angeles and spends most of her free time knitting.
Follow
published Oct 9, 2019
comments
We independently select these products—if you buy from one of our links, we may earn a commission. All prices were accurate at the time of publishing.
Post Image
See More Images
Credit: Westend61/Getty Images

When choosing a flight, we all know how important it is to consider baggage fees. A cheap flight can look tempting, but with budget airlines like Spirit, you know it’s just a base rate, onto which you have to add fees for carry-ons, checked bags, and even selecting a seat. It’s not surprising to hear that airlines make a lot of money from baggage fees, but it’s pretty interesting to see the breakdown in a new report from travel site Upgraded Points.

In 2018, airlines including United Airlines, Delta Air Lines, American Airlines raised the amount they charge for a passenger’s first checked bag by $5. As a result, according to data from the Bureau of Transportation Statistics, revenue from baggage fees went up by 8.6% across all airlines, and by as much as 91.6%(!) for Sun Country. Also in the top three are Alaska (whose baggage fee revenue went up 40.2%) and Spirit (27.3%).

In total, American Airlines made the most in baggage fees in the last year, at a grand total of $1.24 billion. Other top baggage fee earners were United ($933.26 million), Delta ($817.15 million), and Spirit ($669.96 million).

Overall, baggage fees make up just 3% of airline revenues, but for some airlines, they account for way more. The three biggest outliers here are Spirit, whose baggage fees made up 21% of their revenue in the first quarter if 2020, followed by Frontier (16%) and Allegiant (15%).

These same three airlines, plus Sun Country, also receive the biggest average baggage fee from a single passenger. For Spirit, that amount is $26.61; for Frontier, $21.17; for Allegiant, $19.78; and for Sun Country, $16.94. The lowest average fees collected were from Hawaiian ($8.66), Delta ($6.30), and Southwest ($0.36). That doesn’t necessarily airlines that collect more baggage fees are more expensive for passengers overall—it’s just important to remember these fees when you’re picking a flight in the first place, so you can pick the best deal for you.

For (way) more on airline baggage fees — plus lots of fun charts — check out the full report on Upgraded Points.

Filed in:
News
Travel