The rising fuel prices have compelled air carriers to impose fees on checked luggage; three largest airlines in the US have joined the club of charging $15 for the first checked bag. Just after a month, the largest carrier of the US, American Airlines set the precedent for the charge; the other airlines including the US Airways has followed suit. The latest in the line to make such an announcement is the Chicago, Illinois-based airline the United Airlines.
The airlines will charge passengers on discounted tickets in coach class to check their bags. But they have exempted premium members of the frequent-flier clubs, passengers of full-fare and business or first class tickets, and overseas travelers from the new charges. However, passengers to Canada and other places including Puerto Rico, the US Virgin Islands will not come under overseas criterion.
The United’s Chief Financial Officer, John Tague stated that with record-breaking fuel prices, the carrier should explore various means to pursue new revenue opportunities, while continuing to offer competitive fares. The fee to check a second bag will be $25 each way, and three or more bags, overweight bags or items that require special handling will increase from $100 to $125 or from $200 to $250, depending on the item, added Tague. The new bag fees would affect one out of three travelers in the US, and is likely to generate revenue of about $275 million a year. Though other airlines have not come out with any figures in regards to revenue, but it is expected 25 percent of the passengers will come under this new fee structure.
So far, other carriers that share the US airspace Delta, Continental and Northwest are not charging passengers for the first checked bags. However, a spokesman for Northwest said they were closely evaluating the changes in the airline industry. Airlines are facing cost pressures from high prices of jet fuel which are up by about 100 percent as compared to that of 2007. As a measure to offset rising fuel prices, the carriers have resorted to cutting seating capacity as well as jobs. Industry experts predict there will be more such drastic steps, besides the checked baggage fee, if the fuel prices rise any further.