Airline Fees Made Baggage a Billion-Dollar

How Airline Fees Turned Baggage Into Billions

What used to be part of your ticket price—checked bags, seat selection, meals—is now a billion-dollar side business for airlines (Airline Fees). As travelers shell out more for services that once came standard, many are left wondering: how did we get here?

From Service to Surcharge

The turning point came in 2006, when UK budget airline FlyBe became the first to charge for checked luggage. Soon after, American Airlines followed suit in the U.S., charging $15 for a first checked bag in 2008. It marked the start of an industry-wide shift.

Fast-forward to 2024, and U.S. airlines earned $7.27 billion from baggage fees alone—up from $5.76 billion in 2019. Globally, ancillary fees, including baggage, seat selection, food, and Wi-Fi, are projected to hit $145 billion in 2024, making up 14% of total airline revenue.

Customers Are Feeling Duped

Passengers like Lauren Alexander, who flew from Boston to Toronto, call the added charges “ridiculous.” She opted to travel with just a backpack to avoid a hefty $200 checked bag fee. Many others are doing the same.

Sage Riley, another traveler, summed it up: “It can be pricey.”

Checked Bags Down, Carry-On Craze Up

The backlash has sparked a carry-on revolution. UK luggage brand Antler reports soaring demand for cabin-sized suitcases, as travelers pivot to smaller bags to dodge fees. Travel content creators like Chelsea Dickenson are fueling the trend, racking up millions of views with videos testing suitcase dimensions at airport gates.

“It blows my mind,” says Dickenson. “A suitcase hack video gets more attention than weeks of trip planning content.”

Airlines Keep Pushing the Limits

If charging for checked bags wasn’t enough, now some airlines are charging for carry-ons too.

  • Ryanair only allows a small underseat bag for free. Want the overhead bin? That’ll cost you.
  • Similar hand luggage fees are now enforced by EasyJet, Norwegian, Transavia, Vueling, Wizzair, and others.

Consumer rights groups are fighting back. Becu, the European Consumer Organisation, filed a complaint with the EU Commission, citing a 2014 EU court ruling that reasonable-sized carry-on luggage should be free. But the meaning of “reasonable” is still open to interpretation.

The Outlier: IndiGo’s No-Fee Model

India’s IndiGo Airlines offers a rare counter-example. CEO Pieter Eibers says they don’t charge for check-in bags—intentionally.

“We don’t want long lines and debates at the gate,” says Eibers. “Our planes turn around in 35 minutes.”

The Bigger Picture

These fees—often dubbed “junk fees”—have caught the eye of U.S. lawmakers, especially after recent Senate hearings. Some are calling for federal reviews or penalties.But for now, the airline industry sees baggage fees not as a burden, but a business model. And travelers, like it or not, are paying the price—sometimes before even reaching the check-in counter.

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