Bigger fees are compensating for shorter flight manifests. For the first half of 2009, airlines in the United States have raked in $3.8 billion from cancellation, re-booking, checked bag and other fees. Data from the U.S. Department of Transportation puts this result up from the $2.3 billion airlines generated from these fees in the first half of 2008.
While passengers haven't been thrilled with these additional charges, the airlines have had to compensate for a significant drop in passenger traffic, as the industry copes with the worst travel session since the terror attacks of September 11, 2001.
The top source of revenue has been checked bag fees. In the second quarter of 2009, they accounted for $669 million in revenue -- up 276% from the second quarter of 2008. For the first half of this year, airlines in the United States generated $1.24 billion in baggage fee revenue.
The other types of fees increased year-over-year, as well. Fees from canceled or re-booked flights were up 52% in the second quarter to $606 million. Miscellaneous fee revenue, which covers everything from pets to assigned seating (on some airlines) reached $673 million in Q2, up from $565 million for the same quarter last year.
These great gains won't be enough to set the airline industry straight, however. Total revenue from passenger fares reached $22.6 billion for the quarter, down precipitously from $29.6 billion last year.
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