February 4, 2008
United Airlines said on Monday it will charge some passengers a fee to check more than one bag, a move that may generate USD$100 million annually as the carrier attempts to offset high fuel costs. The airline is the first major carrier to charge a fee to check a second bag. Some experts have long predicted that carriers would take this step to bolster revenue in an ultra-competitive industry.
“I think this is just the very, very, very beginning,” said travel expert Terry Trippler of TripplerTravel. “I think it’s going to happen throughout the industry throughout the year.” United’s new fee of USD$25 will be charged to customers who purchase non-refundable domestic economy tickets and do not have status in frequent flyer programs at United or one of its partners in the Star Alliance. The carrier will not charge passengers to check one bag.
Previously, the cost to those customers of checking two bags was included in the fare. For all customers, the cost to check up to four more bags will be USD$100 per bag. Previously, the charges ranged from USD$85 to USD$125 per bag. The cost to check items that require special handling — large, overweight or fragile items — will now be either USD$100 or USD$200, depending on the item.
Bag-check policies vary for major airlines, but generally they check two bags at no additional charge. Southwest Airlines, the largest US low-cost carrier, has begun charging travelers to check a third bag. The first two bag checks remain free. Major US airlines, hoping to build on a recovery that began in 2006, have been experimenting with ways to boost revenue by charging for services and items that once were free. For example, most carriers now charge for meals that previously had been included in the ticket price.
The trend toward “unbundling” goods and services sold on flights serves to generate additional revenue for the airlines and to reduce costs. Unbundling also helps lower base fares and saves money for customers who do not want to pay for certain items. United said that by charging for bag checks, the carrier will be able to keep its base fares lower and better compete with low-cost rivals.
(Reuters)