Delta adds $50 fee for 2nd bags on international flights

As Delta Air Lines tacks on another fee for checking bags, industry observers point to more services the Atlanta-based carrier and others could start charging for as they seek to boost revenues.

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Delta is adding a $50 fee for checking a second bag on international flights on all new bookings as of Tuesday for international travel July 1 or later.

The new levy is in response to the global recession, Delta said. As the first major U.S. carrier to charge extra to check a second bag on international flights, the Delta move could spur other carriers to follow suit.

Business class, elite frequent fliers, active duty military traveling on orders and full-fare Y-class passengers won’t have to pay the fee. Delta already charges fees to check bags on domestic flights.

Delta expects the new international fee to bring in $100 million annually.

Delta said it expects revenues to “be under significant pressure” for the rest of the year. Delta and other carriers may make additional moves if the economy further weakens.

If other airlines match Delta’s new second checked bag fee on international flights, “come the fall, you could see a first bag fee come in,” said airline consultant Robert Mann.

Another new charge that could be coming to Delta is a fee for advanced seat assignments for certain exit row, aisle and window seats. Delta’s merger partner Northwest already charges $5 to $75 for its Coach Choice “preferred seat assignments.” AirTran Airways charges $6 for advanced seat assignments on coach, discount or sale fares and $20 for exit row seats.

“People will pay for a little more comfort,” said airline expert Terry Trippler. “Offering an option where you can pay a premium to sit in a specific location or seat in a coach section, I think is the way of the future.”

Though Delta blamed the recession for the new baggage fee, that doesn’t necessarily mean it will disappear when the economy recovers.

Charging fees for baggage and other services “was kind of a sea change in the business,” Mann said. “I don’t think there’s any looking back at this point.”

Though elite frequent fliers are often exempt from the fees, that benefit could be pared back to the higher tiers of elite frequent flier membership if airlines need to bring in more revenues, according to Mann.

As it reported a $794 million net loss for the first quarter with an 18 percent decline in passenger revenue, Delta also announced Tuesday it would ground its entire fleet of 14 Boeing 747-200 freighter jets effective Dec. 31, because of the age and inefficiency of the aircraft. Delta acquired the cargo aircraft through its merger with Northwest last year.

Delta also said it will take 40 to 50 of its aircraft and 30 regional jets out of its fleet this year.

Trippler said Delta will become more cost-conscious through its merger with Northwest. “People in Atlanta will see a new Delta, but it’s going to be a more efficient Delta,” he said.

“There’s more of Northwest in the new Delta than anybody thought there was going to be,” Trippler said. “Northwest was one lean, mean flying machine. They did not waste money.”