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Airline Baggage Fees on the Rise Again

by Megan Hill

Oct 21, 2016

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Airlines are raising baggage fees and reservation change fees, according to a report by Travel Pulse. And in response, the American Association of Airport Executives stepped up pressure on airlines to remove their opposition to any increase in the Passenger Facility Charge.

“The PFC cap has been $4.50 since 2000. AAAE and several other organizations are asking for what they call a modest increase to passenger airline tickets — from $4.50 to $8.50, with future increases based on inflation. An increase in the PFC is something the airlines oppose,” writes Travel Pulse.

But AAAE said U.S.-based carriers have been posting major earnings from baggage and change fees (a record $1.1 billion in baggage fees and $755 million from reservation change fees in the second quarter of 2016) so they shouldn’t balk at PFC increases, which would help airports make facility upgrades.

“The autumn leaves may be starting to fall, but the astounding bag fee collections from the airline industry continue to defy gravity,” Todd Hauptli, president and CEO, AAAE, said in a statement. “What defies not only gravity, but also logic, is their increasing addiction to bag fees and ancillary revenues (the primary purpose of which seems to be to support their ever-soaring profits) while continuing to vigorously oppose a modest increase in the airport Passenger Facility Charge program.”

Hauptli said he will continue to seek help from Congress on the matter: “AAAE renews its call on Congress to see past the self-serving airline rhetoric and act in the public interest by modernizing the PFC as soon as possible.”

Since 2008, airlines have brought in more than $26.8 billion in baggage fees and more than $21.5 billion in ticket change and cancelation fees, according to the Department of Transportation. Hauptli said that, “By comparison, airports collectively received about $3 billion from the PFC, which is an optional charge that must be justified locally, imposed locally and used locally on FAA-approved projects that enhance local airport facilities,” reports Travel Pulse.

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