Delta Air Lines' revenue from baggage fees last year averaged out to about $8.58 per passenger, the second highest rate in the airline industry.
Among major carriers, only US Airways brought in baggage fee revenue at a higher rate at $9.91 per passenger.
The U.S. Bureau of Transportation Statistics reported this week that Delta brought in $952 million in baggage fee revenue in 2010, the highest amount among all U.S. airlines. The AJC analyzed the numbers to scale baggage fee revenue based on the airline size as measured by number of passengers.
Delta carried the most passengers last year among U.S. airlines, with about 110.9 million boarding planes, according to Bureau of Transportation Statistics data.
Atlanta-based Delta has increased its baggage fees over time and currently charges $25 for the first checked bag and $35 for the second checked bag on domestic flights.
Southwest Airlines brought in an average of just 28 cents in baggage fee revenue per passenger. Dallas-based Southwest does not charge fees for the first two checked bags but does charge for additional bags beyond two.
Southwest held the No. 14 spot for baggage fee revenue with $29.8 million. But it came in second in passenger counts with 106.2 million passengers.
Southwest acquired AirTran Airways earlier this year and plans to eventually bring Southwest planes to Atlanta, along with its no bag fees policy. AirTran, which does charge fees for checked baggage, brought in an average of $6.20 in baggage fee revenue per passenger.
AirTran charges $20 for the first checked bag and $25 for the second checked bag.
United Airlines had an average of $5.79 in baggage fee revenue per passenger, while Continental Airlines' rate was $7.86. United merged with Continental last year to create the world's largest airline, but their combined baggage fee revenue was less than Delta's.
Airlines have increasingly turned to fees to boost revenue, amid stiff competition that makes it more difficult to raise fares. Air fares have declined 21 percent from 2000 to 2010 on an inflation-adjusted basis, according to the Bureau of Transportation Statistics. In 2000, fares made up 84 percent of airline revenue, a rate that dropped to 71 percent in 2010.
Not all passengers pay baggage fees. Some passengers don't check bags and airlines typically exempt some passengers, such as elite frequent fliers and members of the military, from paying some baggage fees. Delta also allows those who hold its American Express credit card from paying a fee for the first checked bag. Passengers on international flights also often get at least one free checked bag.
The figure on baggage fee revenue per passenger puts the revenues to scale, but the calculation includes passengers who don't pay baggage fees. Also, the number of passengers boarding planes includes connecting passengers; a passenger who takes a flight with a connection would be counted as two passengers, but would only pay a baggage fee once. And the Bureau of Transportation Statistics passenger counts for each airline don't include all passengers on the airline's regional partners, while the baggage fee revenues would include fees collected by the airline through its regional carriers.
Aside from different fees for the first two checked bags, airlines also charge different rates for bags beyond two. Delta, for example, charges $125 for the third bag and $200 for bags four through 10 on domestic flights. AirTran charges $50 each for the third bag and beyond. Southwest charges $50 for bags three through nine and $110 per bag 10 and beyond. United charges $100 for bags beyond two. The carriers also charge different rates for overweight and oversized baggage and for excess baggage on international flights.
Carrier. Jan-Dec 2010 Enplaned Passengers, in millions. 2010 bag fee revenue, dollars in millions. (Bag fee revenue)/passengers
Delta** 110.925 952.250 $8.58
Southwest 106.228 29.787 $0.28
American 86.129 580.663 $6.74
United 54.080 313.207 $5.79
US Airways 51.814 513.623 $9.91
Continental 43.479 341.585 $7.86
AirTran 24.558 152.148 $6.20
About the Author
