Originally Posted by
Pineapple Guy
Bill, true, but all they've really done is split out that fee from the regular price of a ticket. It's not like that is extra revenue, it's simply a different way of collecting it. Compare total RASM today, vs before 9/11 and let me know what you find....
Remember that a Bag "Fee" is classed as an expense and is not taxable. It goes strait to the bottom line and is actually more profitable as the taxed ticket value is less. USA Yesterday ran an article on this a few months back. Fees are a great way for airlines to keep all (or at least more) of the money charged to the passenger.