Is the era of excessive airline fees really over?

Maybe you heard about the students who “rioted” on a recent Ryanair flight because of the airline’s confiscatory luggage fees.

And maybe you heard the emphatic declarations from the blogosphere that this was the final straw, that enough was enough, and that airlines had finally gone too far with fees.

With the third anniversary of American Airlines’ pivotal first-checked-bag fee just a few weeks away — a surcharge that had a domino effect, paving the way for a fee bonanza that’s returned the industry to profitability, it’s worth asking: Are airlines about to pull back on fees?

The answer lies in the question. Because these surcharges have brought in billions of dollars in extra revenue, literally billions, it’s unlikely airlines will say, “The line has been drawn. We can’t become like Ryanair. Our passengers will riot!”

But for a few hopeful days, I thought I could write such a post. The backlash against Ryanair was pretty severe. A doom-and-gloom prognosis from a prominent airline blogger, who predicted 2011 would be the Year of the Airline Fee, had already angered a few air travelers. The student uprising only fueled the fire.

Then Delta Air Lines announced it would add roomier seats to certain flights, which was a tacit acknowledgment that some of its flights didn’t have enough legroom. There was a report about it sending its agents back to charm school in an effort to improve the customer service experience, too.

I thought: Maybe I can cite these as examples of one airline understanding that customers are mad as hell about the overall flight experience, if not about being nickel-and-dimed by fees.

But then came word yesterday that US Airways had boosted some of its luggage fees, and as I sit here ponding the whole airline experience in 2011, I think to myself — nah, it can’t be that easy.

Take another look at Delta. There’s no evidence it’s backing off from building a business on fees. In just the first three quarters of 2010, it collected $733 million in baggage fees, the most of any domestic airline. Also, it isn’t giving the roomier seats away. You have to earn them with your status or pay extra for them.

Truth is, random anecdotes from Ryanair or Delta are no indication of where we’re headed, any more than the incendiary and uninformed predictions of any blogger. They’re just interesting anecdotes that make for compelling copy.

The fact that Delta added roomier seats the same week as the Ryanair mutiny? Coincidence. And its recurring training program isn’t new, either. I sat in on a similar class last year when I visited Delta in Atlanta.

US Airways’ new baggage fee is the only peg I can hang my hat on. It is slow, steady, a little stealthy. According to its website, oversized bags and those weighing more than 70 pounds now will cost $175, up from $100. The airline claims its new policy is now in line with other carriers.

No major American carrier is going to go where Ryanair has gone, charging for boarding passes and seat assignments and the ability to pay with a credit card. That’s the provenance of cut-rate, overtly customer-hostile air carriers who cater to passengers who are blind to everything but a low airfare.

Instead, they’ll probably pile on the fees slowly, in a way we won’t notice.

Airline fees are unstoppable, sadly. The only thing that can make a difference is sensible legislation that requires airlines to reveal the total cost of an airline ticket.

Sorry, but the fees aren’t even slowing down — mutinies notwithstanding.

And no, this isn’t the Year of the Airline Fee.

It’s the Decade of the Airline Fee.

(Photo: Andres Rue da/Flickr Creative Commons)

  • cjr

    It’s only just beginning.

  • Brooklyn

    I know I keep saying it, but we need Congress to set a baseline package of services to be met by all airlines that take off or land from US territory: seat size, baggage allowance (weight and piece), flexible cancellation fees, etc. If the airlines want to charge fees for extra services above and beyond the minimum, fine. They’ll retaliate by raising fares, but in the end they’ll have to lower them again because the TSA has left so many people unwilling to fly that their customer base has shrunk. Also, with a standard package of services, there will be few ways for them to compete with each other except by lowering fares. Remember, these aren’t special favors; they’re what we were entitled to as a matter of course until a very few years ago.

  • BillC

    The only way to get airline fees removed is for people to stop flying and/or not pay the fees by not bringing baggage, not asking for a window/aisle/exit row seat, not ordering food. As long as the fees keep rolling in they are not going anywhere.

    If consumers want airlines to act in a certain way the consumer must speak with their wallet and be willing to continue the struggle to the end. Otherwise we will only keep coming back here to impotently complain.

  • Tom

    The argument that Ryanair doesn’t know what customers want is somewhat undercut by their growth from a start-up just 25 years ago to becoming the largest carrier of international passengers in the world. Passengers increased 10 percent last year to 72 million.

    So when people say the hate the low priced model and hate Ryanair for charging fees to bolster their low prices, they certainly aren’t speaking for Ryanairs rapidly growing passenger base.

    All those airlines who a few years ago were offering better services for higher fees have gone broke or changed their model, while Ryanair has soared. Reading this blog you would think an airline would go broke offering minimal service and bargain basement prices, but the opposite is true.

  • Elizabeth Hamill

    I’m worried that airline seats are getting so close together that even if a buy a seat for my infant, his carrier (the ones that are reverse-facing only) will not fit into the seat.

  • http://www.visitdevonandcornwall.com/ Devon Cottages

    The same can be said for the UK. Companies offer budget flight costs, then you add airport tax, ticket handling fees, baggage fees, parking and tax and before you know it you have one hell of a large price for your budget flight!

  • sweepergrl

    I decided to stick to my guns about not flying if at all possible. It’s not hard with the 5 hour and less trips, but Lord is it going to be a very long 14 hours one way drive next week. I’ll be traveling 28 hours over 3 days, but I won’t be groped by strangers, crammed into a tiny seat that I’ll have to share with my over-sized neighbor and charged a fee for everything except oxygen. Right now, that’s worth it to me. That being said, you may want to buy stock for Advil and Coke, because I’m going to be consuming a whole bunch next week.

  • Steve

    Sounds like anyone flying US Airways with overweight/oversized luggage would be better served shipping their bags ahead of them. It can’t cost more than $175 (right?) and at least that way, if the bags are lost or delayed, you can actually demand accountability from UPS, FedEx, etc.

  • http://www.confessedtravelholic.com Michelle

    Yea the additional fees are endless!

  • Flyer

    I tend to agree with Tom.. The notion that Ryan Air is doing it wrong, simply isn’t supported by their passenger load and growth.. sure, they may alienate lots of people, but in the end, they’re growing and filing the planes.. and i also suspect that some of those alienated passengers still fly them today– simply because they ARE, in many (but not all) cases, the lowest fare out there…

    I don’t have an issue with a government rule that requires things like checked baggage and such to included in the fare.. but I also realize that by doing so would force the fares– across the board– to rise.. these charges will, in essence, be paid, but just via a different channel..

    I look at my own cell bill as an example, the cost of 911 service is now paid by me via a pass thru surcharge..

    So, I don’t think that getting Congress to act will make them go away.. they’ll just be charged and collected via other avenues..

    My thought is that for US domestic travel the consumer HAS spoken and they’ve said they want THE lowest fare.. period..

    sure, they’ll bitch and moan about fees, but it’s my opinion, that in the end, its the FARE that matters..

    To say that some will simply opt-out and say “I’ll drive” just isn’t an viable alternative in many cases.. Plus, going forward the money isn’t in routes that can be realistically driven.. they are long haul international, like to Asia..

    Do I want congress to step in and regulate? Perhaps. but I’m under no illusion that by doing so will make the fee totally disappear, they’ll simply get rolled into a base fare..

  • Raven

    Congress takes many kick-backs from the airlines. They will never help us peons with the abusive fees. After all, when was the last time you heard of a Senator or Congressman flying on a coach class ticket?

  • http://www.clarkecomputer.com Charles Clarke

    The more they unbundle services and charge fees for them, the better prices they can show on OTA websites and/or force them to use the direct XML feeds instead of the GDSes. It will cause more cases of use or be used by the airlines. Elite passengers will benefit and the uneducated masses will suffer. You can pay, in time and/or money, to become educated or pay in fees. Which is best for you depends on how much you travel. And most who are uneducated will stay that way because they don’t know about great sites like elliott.org or flyertalk.org.

    It is getting so the best choice is to go vacation somewhere warm and spend your time naked. Luggage? What luggage? ;-}

    Thanks Chris.

  • AspenDew

    “That’s the provenance of cut-rate, overtly customer-hostile air carriers who cater to passengers who are blind to everything but a low airfare.”

    Dang, Chris, you been flying EasyJet lately or something?

  • AA-Platinum

    Yes, the airlines are raking in big fees. However, they are driving away customers who have a choice (and we are usually the ones who pay the higher fees).

    For a forthcoming trip I could either fly Delta or AA-Eagle. Since I am traveling with my family (3 VERY young children). If I had flown Delta I would have paid over $200 in baggage fees. As an AmericanAdvantage elite, I pay no baggage fees. Thus, it was no contest; we will fly AA-Eagle.

    And, because we were flying AA-Eagle, my parents (who will fly first class) and my brother (party of 4) will also fly AA.

    Delta might not care about the lost ticket revenue, but AA is surely glad to have received an extra 8 coach and 2 First Class tickets

  • Mike in NC

    we’re the frogs, and the heat is slowly being applied.

  • Mary Graham

    As long as we continue to fly, this will continue. I say don’t fly. Withhold your business. Vacation close to home, invest in a webcam and visit that way. It’s the only way I can think of. Boycott!

  • Delta – 2-million-miler

    Delta is getting hammered (justifiably) for its actions lately. I had my first flight with DL in 1967 and it, along with other airlines, have steadlily let (NO)Customer Service go in the toilet.
    But, these bloggers are right: the fees ain’t going away, folks – they’re here to stay.
    Get Congress involved (@Brooklyn)? Sure. they are slowly ruing America…why not attack the airline industry and ruin it too?
    Finally: Why don’t railroads study this situation and offer some remedies? I know, they don’t have passenger service and Amtrak is somewhat of a joke in certain areas, but at one time we had a viable rail service in America but no longer. Would you trade extra time, in comfortable seating and interesting viewing (with less cost?) and ride the rails? Hmmm. Maybe the railroad industry will at some point in time take another look at providing it. Those of us who line in Georgia can look back, wistfully, at the old “Nancy Hanks” rail service between ATL and SAV.

  • Bill

    I think it would be helpful to separate the issues here.
    Are the airlines making more profit than they deserve?
    Not from their financial reports.
    Some have made a profit recently, but over the last 3 years all but a handful are in the red. SouthWest being an exception. Note that they don’t charge extra fees.
    That being said, the problem I have is these extra fees are not visible enough when making reservations. If they are going to charge these fees then they need to be explained before for the final ticket price is stated and the option provided at that time to accept them or not.
    The ethical issue in this to me is not the total fee, but the way the airlines get you committed to a ticket at a price and then when you show up and literally have no options they sock you with additional fees above what you already agreed to pay.
    That should not be allowed.
    The rules for all service providers, airlines, hotels, rental cars, etc. is that all fees that they intend to charge or “offer” need to be explained and offered before any payment is made by the consumer.

  • http://www.cogitamusblog.com/ Lisa Simeone

    Sorry, I wish I could get on board with demanding lower fees, but I can’t.

    I find it fascinating, however, that people in this country are more up in arms over paying a few extra bucks for their (usually grotesquely excessive) baggage than over their sexual assault at the hands of our security overlords.

    Back in the days when I flew, I was always well-dressed and carried the smallest bag on the plane. Yes, I’m inordinately proud of this. My bag was stewardess-size. Even for trips to Europe as long as a month, even in winter (though summer dressing is, obviously, easier). And I’m not talking jeans & T-shirts either.

    Sorry, but I just don’t buy that people can’t travel with less crap. If you want to tote along more of it, why shouldn’t you pay more? Or take less? But I agree that the seat size is obnoxious.

    If more people were boycotting airlines because of the shredding of our 4th Amendment rights and all the abuse that goes along with that (handcuffing, incarceration, etc.), then maybe we’d get somewhere. Instead, we have students “rioting” because they brought along too many pairs of shorts and flipflops.

    Oh, and re Amtrak — I just took a biz trip last week — 11-hour train ride each way. Yes, it was a lot longer than a one-hour flight would’ve been. But huge seats, long aisles, friendly conductors, entertaining passengers, and no abuse. Bravo, Amtrak!

  • AA-Platinum

    Vis-a-vis Elizabeth Hamill’s comment on February 10, 2011 at 3:25 pm — You are quite right. I can ONLY get my Graco Snug Ridge car seat into a bulk hear row. Otherwise, it does not fit into most seats (and the few it does prevents the seat ahead of mine from reclining…not that people haven’t tried…even with a sleeping infant behind them).

    And just wait until you graduate to a forward facing seat…it only gets worse

  • LadySiren

    Count me in with the boycotters. We’re simply not flying until the airlines and the TSA start acting like they’ve got a modicum of common sense. I won’t subject my kids to the radiation of the porno scanners or body-grabbing, and I refuse to fly unless I’m forced to by my employer.

    Our last vacation? We drove to Florida. Our next vacation? We’re getting a rental RV and doing the whole National Lampoon’s thing on our way to Yellowstone (yes, we will stop at Wall Drug, the Corn Palace, etc.) and the Grand Canyon. After that? Who knows, maybe I’ll actually let go of my prejudice against cruises and we’ll give it a whirl (after driving to the port, of course). I just simply don’t see value in flying these days, unless it’s absolutely the only option.

  • http://oussamastake.blogspot.com/ Oussama

    Airline fees will increase not the number of different fees but the value of the fees. Fees carried the industry to profitability and why stop a good thing. Of course one more surcharge is coming and that is the fuel surcharge to cater for the $100 barrel of oil. This surcharge will be removed a few months after oil prices go down just like they did 2 years ago. The excuse being the surcharge did not cover all the cost.

  • Catherine Elliott

    I simply will not fly unless it is absolutely necessary. I would like to see trains become more passenger friendly. I think they are really missing out on an opportunity to fill a niche for vacation travelers.

  • Jim Miller

    As a thought, when was the last time any american airline had their books reviewed and checked by an independent, outside source to actuall ensure that what the airlines claim is true. Specifically that they are not making an money unless they charge fees on top of the high ticket prices they give us? As airlines were deregulated in the Regean era remember, he is the GOP’s “guru”; all we have seen is UP, UP and AWAY when it comes to a) ticket prices, b) fees, c) NO customer service, d) NO customer appreciation. Yet, the airlines want and try to demand loyalty from the airline passengers. Sorry folks, you can’t have it both ways. Now I see some Congressional members wanting to eliminate high speed rail, and it isn’t really even on the board yet. High speed rail for short haul distances WILL compete with the airlines, and could very easily edge them out of “shorthaul” markets. Why spend all the extra time going to and from airports, when you could easily get on a train and leave? Why not have large, comfortable seats and even possibly a dining car WITH service, instead of having to purchase a sandwich for around $10.00? If high speed rail works in others countries, why would anyone not believe it would work in our country? Putting in this type of system has a two-fold plus to it. a) Puts a LOT of people to work and b) helps to re-establish a very definitely needed portion of our country’s people moving/travel industry. It might also, perhaps, wake up the airline industry that there is a new player on the field and that player actually “likes” it customers.

  • not worried

    Still some people that do not know the difference between a sexual assault and a search but thats OK.

    The airlines may still be in the red but their CEO’s and exec are drawing millions in salaries and perks. Some of them make more in a month than I will make the rest of my life. Being in the red could be a result of overpaying corporate workers and poor management, not necessarily as a result of poor business.

    I hate flying. I don’t necessary like or approve of TSA screening but I tolerate it because I have to. That is until I can find a train to take me to the port and a steamer to take me to the rest of the world. For those, I would gladly pay far more than the price of an airline ticket. We could learn from the european transport system.

  • not worried

    @ Lisa: Still some people that do not know the difference between a sexual assault and a search but thats OK.

    The airlines may still be in the red but their CEO’s and exec are drawing millions in salaries and perks. Some of them make more in a month than I will make the rest of my life. Being in the red could be a result of overpaying corporate workers and poor management, not necessarily as a result of poor business.

    I hate flying. I don’t necessary like or approve of TSA screening but I tolerate it because I have to. That is until I can find a train to take me to the port and a steamer to take me to the rest of the world. For those, I would gladly pay far more than the price of an airline ticket. We could learn from the european transport system. Although I miss the effecient trains of Germany, I doubt that any similar governmental run system in the US would function as well. It seems that effeciency goes out the window any tome our government gets involved.

  • DaveS

    No, no, no, it is not the business of Congress to regulate airline fees. Just because some people want to go back to the days when everybody paid for services that only some people want is no reason to make that happen by force of law. As long as the fees can be avoided and are honestly publicized, the airlines have the right to run their business as they see fit, and I have the option to fly from Point A to Point B without paying for services I don’t want. I honestly think some of the whiners should get together and start their own airline if they think they can do it better. Good luck to you.

  • Patrick

    About 5 years back I decided on a Ryanair flight from Stansted to Palermo. Major mistake. Prices might look great but don’t plan on carrying much past a toothbrush and swimsuit. Better off buying when you get there. I could have flown Air Italia from Gatwick to Palermo for about the same money with way fewer hassles. That was about four years back so I can just imagine. I’ve taken other low cost airlines and felt I got what I paid for but not on Ryanair. Check out EasyJet an others.

  • Patrick

    Need to add that rumors had it that Ryanair was going to put coin entry meters on the lavatories. Did that ever happen?

  • DaveS

    Ticket prices in inflation-adjusted dollars are incredibly cheaper than they were under regulation. In many cases they are even cheaper in CURRENT dollars. Anyone who says otherwise is simply wrong.

  • http://www.lubetkin.net Steve “@PodcastSteve” Lubetkin

    Seems like the airlines have discovered what the banks discovered years ago. Fee income heroin. Charge for the things that used to be amenities and you can make a surprising amount of revenue. The problem is that revenue gets backed into your expectations and you can never ever really disengage. That’s the problem FleetBoston encountered when it bought NJ-based Summit Bank in 2000. Summit had a popular free checking account if you kept at least $99 in it. Fleet never met a service it didn’t like charging a fee for, and had a really hard time agreeing to grandfather the free checking accounts. This was a bank that was charging its own customers up to $3 for ATM withdrawals.

    No one should be surprised at the ingenuity of the airlines in finding more ways to charge fees. What about a $5 fee to receive SMS or Twitter messages announcing gate information – and doing away with PA system announcements at the airports?

    I’m with the commenters who suggest shipping your bags ahead – They’ll be waiting at your hotel and you will know with certainty that UPS or FedEx can get them there.

  • David Z

    Era of excessive airline fees really over?

    You wish? :)

  • Barry Graham

    The worse fees are the taxes that don’t appear in the ads.