Airlines Raking In More Cash From Bag, Reservation Fees
According to the Department of Transportation’s Bureau of Transportation Statistics, airline net income fell from $12.2 billion in 2013 to $7.5 billion in 2014 — but that’s not really a huge deal as those figures could include one-time gains or losses, points out the Associated Press.
And besides, that’s just net income: Pre-tax operating profit rose at the 27 airlines in 2014 to $14.6 billion, up from $11.3 billion in 2013.
It’s where they’re making money that’s telling: Airlines pulled in $3.5 billion in bag fees, which is a 5% bump up from 2013. Charging reservation-change fees brought in $3 billion in 2014, which is a 6% increase.
Those are the only ancillary fees reported to the BTS as separate items, however. There are plenty of other extras airlines get revenue from: Think about every time you pay for more leg room or an aisle seat, buy a movie to watch in flight or order another wine for dinner. Those fees all get lumped together and cannot be identified separately, the bureau notes.
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