Article states Delta made $863 million in bag fees, and $766 million in change fees

[General Lee]

Delta hauls $863.6 million in annual baggage fees
Atlanta Business Chronicle by Jacques Couret, Senior Online Editor

Date: Thursday, May 17, 2012, 4:45pm EDT


For the third year in a row, Delta Air Lines Inc. pulled in more baggage fee revenue than any other U.S. airline.




For the third year in a row, Delta Air Lines Inc. pulled in more baggage fee revenue than any other U.S. airline, according to data released Thursday by

The US Department of Transportation data, which shows Atlanta-based Delta (NYSE: DAL), which posted an annual profit of $854 million last year, also generated $863.6 million in baggage fees, BTS data show.


Also in 2011, Delta led its peers in cancellation/change fee revenue with $766.8 million, up from $698.6 million in 2010.



Bye Bye---General Lee

 

[Varmint]

This both good and bad. Here are the 2 different sides to reading this article:

Shareholder and Employee opinion: This is great, we are making money again !!!

Customer opinion: Fly Delta...get nickle and dimed to death with fees.

side note: BUT...customers are stupid so they will continue to pay the fees and pay more in the end then a more expensive all inclusive ticket. Good for Delta.

 

[Muskycat]

This both good and bad. Here are the 2 different sides to reading this article:

Shareholder and Employee opinion: This is great, we are making money again !!!

Customer opinion: Fly Delta...get nickle and dimed to death with fees.

side note: BUT...customers are stupid so they will continue to pay the fees and pay more in the end then a more expensive all inclusive ticket. Good for Delta.

Or you could fly an airline that spends 100's of millions a year on ads to tell you that your bag flies for free and then roll that cost into your ticket. Some people feel better when they hear free!! As the old adage goes, nothing is free, especially if the company advertises it. I wonder how much an ad(s) cost during an NFL game or to put ads on billboards in every major city?

 

[redflyer65]

I think Delta's 'Bags Fly Free'....with our credit card is a pretty smart way to play it. The planes are still full, with or without the DL fees.

 

[N1atEcon]

100's of millions

I think you took a drama pill today.

 

[Jar Jar]

I think Delta's 'Bags Fly Free'....with our credit card is a pretty smart way to play it. The planes are still full, with or without the DL fees.

Exactly. "Hey you don't want to pay the bag fee? No problem, sign here." Then all of a sudden people get suckered in to the skymiles mentality and then you become a "GOLD" member, striving for that medallion status - those free upgrades and skyclub access. O yea you've made it now! All the while Delta has taken your brain out of the market. You no longer look at other airlines when deciding to fly, because goddamit you're gonna be medallion some day, son!

 

[Linedriver]

Exactly. "Hey you don't want to pay the bag fee? No problem, sign here." Then all of a sudden people get suckered in to the skymiles mentality and then you become a "GOLD" member, striving for that medallion status - those free upgrades and skyclub access. O yea you've made it now! All the while Delta has taken your brain out of the market. You no longer look at other airlines when deciding to fly, because goddamit you're gonna be medallion some day, son!

I'm an aluminum member!

 

[1st Rate]

Good for Delta. Just like ANY other industry, if you want more stuff... you pay more for what you get. It is really a simple concept!

 

[redflyer65]

I'm an aluminum member!

Hey, it's the Gold of the next generation. We'll all have to pay more and get less!

 

[nwaf16dude]

I'm an aluminum member!

Hey, I think the correct terminology is "Aluminum Medallion"...and don't forget to capitalize!

 

[Full of LUV]

Exactly. "Hey you don't want to pay the bag fee? No problem, sign here." Then all of a sudden people get suckered in to the skymiles mentality and then you become a "GOLD" member, striving for that medallion status - those free upgrades and skyclub access. O yea you've made it now! All the while Delta has taken your brain out of the market. You no longer look at other airlines when deciding to fly, because goddamit you're gonna be medallion some day, son!

That's the best part, Frequent fliers / CC users are exempt from most normal bag fees, it's the expedia crowd and once every two year fliers (or frequent fliers with no brand loyalty) that suck up these fees.

 

[JohnQ]

Yep. I used to think the change and bag fees were bad ideas, until I saw the following exchange between a passenger and a gate agent.

Pax: "I'm scheduled for the flight to LGA an hour from now. I was wondering if I could get on this one instead?"

Agent: "That will be a $75 change fee."

Pax: "I'm Silver Medallion. Does that make a difference?"

Agent: "Sorry, we only waive the change fee for Gold and higher."

Pax (without ONE second hesitation): "Okay, I'll pay the $75."


So why shouldn't DAL or any other carrier charge the fees? The contract of carriage is between the passenger and DAL for the flight they originally booked. If they want to change that, that's great. Doesn't mean DAL has to grant it for free. Also, in most cases (and probably this one) it isn't so much the pax as the corporate travel office that is paying the change fee anyway.

 

[Dash Power]

Good for Delta. Just like ANY other industry, if you want more stuff... you pay more for what you get. It is really a simple concept!

This is the kind of mentality that will find them charging for the use of the lav someday.

Interesting without these charges Delta would have had a significant loss during those years. History has shown that at some point those extra charges will eventually not make any difference. Just like charging for meals and non alcohol drinks.

This type of bragging always turns into something different.

Good luck to us all.

 

[General Lee]

This both good and bad. Here are the 2 different sides to reading this article:

Shareholder and Employee opinion: This is great, we are making money again !!!

Customer opinion: Fly Delta...get nickle and dimed to death with fees.

side note: BUT...customers are stupid so they will continue to pay the fees and pay more in the end then a more expensive all inclusive ticket. Good for Delta.

This aint Amtrak. DL has to make money consistantly to eventually buy bigger airplanes to compete with the likes of your company, Emirates. You have to have big, NEW, airplanes to compete on Global scale.


Bye Bye---General Lee

 

[General Lee]

This is the kind of mentality that will find them charging for the use of the lav someday.

Interesting without these charges Delta would have had a significant loss during those years. History has shown that at some point those extra charges will eventually not make any difference. Just like charging for meals and non alcohol drinks.

This type of bragging always turns into something different.

Good luck to us all.

How do you combat higher gas? Oh, wait, you buy a refinery. That is one way of thinking outside of the box. Again, this isn't AMTRAK. Profits need to be made. Would there have been a big loss without the fees? Maybe. I'm glad there wasn't. That is what management should be pushing for, PROFITS. As far as paying for the toilet, the only airline that has stated they could do that was Ryannair in Europe, and it is a Southwest model LCC. Remember, SWA still charges for bags too, on the Airtran side. They could easily stop that if they wanted to, but for some reason they do not...



Bye Bye---General Lee

 

[General Lee]

Or you could fly an airline that spends 100's of millions a year on ads to tell you that your bag flies for free and then roll that cost into your ticket. Some people feel better when they hear free!! As the old adage goes, nothing is free, especially if the company advertises it. I wonder how much an ad(s) cost during an NFL game or to put ads on billboards in every major city?

They still charge for bags at Airtran, owned by Southwest.


Bye Bye---General Lee

 

[Linedriver]

This is the kind of mentality that will find them charging for the use of the lav someday.

Interesting without these charges Delta would have had a significant loss during those years. History has shown that at some point those extra charges will eventually not make any difference. Just like charging for meals and non alcohol drinks.

This type of bragging always turns into something different.

Good luck to us all.

Times change. There used to be a time when hedging fuel was a unique idea and the airline who did it best had a competitive advantage. Now most airlines hedge fuel so the bar has to be raised in another area. It's marketing to the consumer. If you owned a small business you would be creative in ways to gain the most profit. If you don't you will incur a loss and eventually go out of business.

Delta has an obligation to it's shareholders and employees - so does Southwest. Each has an excellent product but it's a competitive marketplace. Any idea that creates almost a billion dollars annually is hard not to consider.

Just sayin'...

 

[N1atEcon]

How do you combat higher gas? Oh, wait, you buy a refinery. That is one way of thinking outside of the box.

GL when your box starts spewing cash you feel free to give me the "I told you so".
What DAL has done is a very very risky venture. If it works good for you. But lets be real here. What goes into a refinery is paid for at a world market rate. You still have to refine it, which costs money. So just like airlines selling hotels, rental cars, food, movies ect. It is just a way to try to get a few more cents to flow to the airline per passenger. I hope you can say I told you so.

P.S. My Dad just retired from 31 years of refinery work. He laughed when I told him of this venture. I think it will be a great way to write off a lot of taxes myself.

 

[Dash Power]

Delta has an obligation to it's shareholders and employees - so does Southwest. Each has an excellent product but it's a competitive marketplace. Any idea that creates almost a billion dollars annually is hard not to consider.

Just sayin'...

I completely agree.

It just won't last as an advantage.

Just sayin'

 

[Dash Power]

How do you combat higher gas? Oh, wait, you buy a refinery. That is one way of thinking outside of the box. Again, this isn't AMTRAK. Profits need to be made. Would there have been a big loss without the fees? Maybe. I'm glad there wasn't. That is what management should be pushing for, PROFITS. As far as paying for the toilet, the only airline that has stated they could do that was Ryannair in Europe, and it is a Southwest model LCC. Remember, SWA still charges for bags too, on the Airtran side. They could easily stop that if they wanted to, but for some reason they do not...



Bye Bye---General Lee

I have found rationalizing with you is impossible. It is amazing you have chosen this profession.

My comment had nothing to do with a Delta vs SWA bashing of which you have a neurotic attachment. We are all in this together if your myopic point of view has not seen yet.

Good luck to us all.

 

[Varmint]

This aint Amtrak. DL has to make money consistantly to eventually buy bigger airplanes to compete with the likes of your company, Emirates. You have to have big, NEW, airplanes to compete on Global scale.


Bye Bye---General Lee

I didn't say there was anything wrong with Delta making money.

Do you forget that we have to compete with the likes of your company, Delta, as well? Nobody stopped Delta from purchasing new and larger aircraft instead of more RJ's.

Delta uses its 5th freedom rights out of NRT.....How would you feel if Emirates created a hub in LAX or ATL when Delta is doing the same thing in someone else's backyard. Should the government step in to protect Delta?

Also, when you assumed that Emirates was getting cheap fuel in Dubai, which is not the case, you were on here complaining about it......BUT....now that Delta has purchased a refinery and may reap the benefits of some cheaper fuel in the Northeast, I don't hear you complaining about an "unfair" advantage.

Interesting times.

 

[Varmint]

.........

 

[General Lee]

I didn't say there was anything wrong with Delta making money.

Do you forget that we have to compete with the likes of your company, Delta, as well? Nobody stopped Delta from purchasing new and larger aircraft instead of more RJ's.

Delta uses its 5th freedom rights out of NRT.....How would you feel if Emirates created a hub in LAX or ATL when Delta is doing the same thing in someone else's backyard. Should the government step in to protect Delta?

Also, when you assumed that Emirates was getting cheap fuel in Dubai, which is not the case, you were on here complaining about it......BUT....now that Delta has purchased a refinery and may reap the benefits of some cheaper fuel in the Northeast, I don't hear you complaining about an "unfair" advantage.

Interesting times.

Delta used NW's authority at NRT. UAL used Pan Am's. If Emirates wants to buy another airline, they may be able to do it as well. I know what you are saying about LAX and ATL and Emirates, but you probably also know that most US airports are limited on space for gates, only able to give new entrants a couple flights per day. Emirates protects it's hub in DXB, and the legacies do the same here in the States.

What Emirates does benefit from is cheaper labor (all over Dubai---maybe not the pilots, but almost everyone else), and I think the Gov't of Dubai helped finance the start of your airline. The fuel may not be free, but start up costs weren't bad, because nobody can start an airline and just order 90 A380s and 150 777s.

As far as Delta purchasing more widebodies, I am hearing things about a possible future order, but Delta has had it's problems, along with most legacies, since 9-11. Emirates has grown since then, but if the Iran situation explodes, your airline may unfortunately experience the same deal, with a huge slowdown of passengers and freight in that whole region. Things happen. Some of your A380s have been parked for awhile awaiting those wing spar replacement parts, and that has lead to some involutary leaves for your cabin crew (as told to me by an Emirates Cabin Crew member in DUS last week). Things happen that are out of our control sometimes. But, I hope we all enjoy great careers.


Bye Bye---General Lee

 

[General Lee]

I have found rationalizing with you is impossible. It is amazing you have chosen this profession.

My comment had nothing to do with a Delta vs SWA bashing of which you have a neurotic attachment. We are all in this together if your myopic point of view has not seen yet.

Good luck to us all.

I didn't slam SWA at all. I was saying the ONLY airline considering the pay for the lav idea is Ryannair, out of Ireland. I didn't say SWA was doing that. Ryannair is a SWA clone, one aircraft type, modeled after you guys. I agree that we are all in this together, and I hope we all make more money and keep the bar high for others.


Bye Bye---General Lee

 

[General Lee]

GL when your box starts spewing cash you feel free to give me the "I told you so".
What DAL has done is a very very risky venture. If it works good for you. But lets be real here. What goes into a refinery is paid for at a world market rate. You still have to refine it, which costs money. So just like airlines selling hotels, rental cars, food, movies ect. It is just a way to try to get a few more cents to flow to the airline per passenger. I hope you can say I told you so.

P.S. My Dad just retired from 31 years of refinery work. He laughed when I told him of this venture. I think it will be a great way to write off a lot of taxes myself.

Most people disagree with you. First of all, Delta made $1.5 billion in FEES last year alone. The Refinery deal cost about $180 million, and it is expected to save $300 million per year. Delta Airlines will own it, but Monroe Energy will run it (Delta was founded way back when in Monroe, LA). Monroe Energy will have oil people running it, and the deal is BP will ship oil from Nigeria, or will have it trucked or barged from places like North Dakota. Delta will take the Jet A only (12% of a barrel of oil), and give the rest to BP. Two other oil companies in the NE will also take any oil products that DL does not want in the Deleware facility and trade DL Jet A in other parts of the NE, all at cheaper prices than normal.(SWAP deals) No more paying for "refinery costs" or the middle man in the NE. Sounds like a great deal, right? When the price of crude goes down, the refinery actually is more profitable, (the refinery business). Add to that the fuel surcharges are still in place, and that means even more profits. Fuel is the number one expense at airlines now, and it was very smart to try to tackle that problem. Again, pay $180 million to get $300 million per year in savings. No brainer. And, oil people will run it. Make sure you tell your dad my response.



Bye Bye---General Lee

 

[N1atEcon]

GL, if delta started selling deep fat fried turds on a stick you would tell us all how great they are. If any other airline came up with that idea you would be the first to tell us how dumb of an idea it is since all turds taste like crap.

 

[General Lee]

GL, if delta started selling deep fat fried turds on a stick you would tell us all how great they are. If any other airline came up with that idea you would be the first to tell us how dumb of an idea it is since all turds taste like crap.

Look, these management types are probably a lot smarter that you and your dad. Get over it. Oil people are running the oil refinery, and it will be owned by Delta. The only people who don't like the idea are you, your dad, and refinery analysts on CNBC who are scared sh#$$less. BP and two other oil companies signed on, but you and your dad know better.....Have a great one!


Bye Bye---General Lee

 

[N1atEcon]

Who said we didn't like the idea? I like it because I personally think it is a stupid idea. It is an old refinery that was shuttered.

Analysts have been puzzled by Delta’s interest in the refinery, a notoriously difficult business that is chronically unprofitable

.

Now you have a great one. Bye Bye

 

[madjack]

What do oil analysts know about refining oil...not as much as Airline execs I bet!!

 

[General Lee]

Who said we didn't like the idea? I like it because I personally think it is a stupid idea. It is an old refinery that was shuttered.

.

Now you have a great one. Bye Bye

You think tackling your biggest cost is a BAD idea? Really? You think paying the middle man (the refineries) is a good idea? You sound like a genius, NOT. Just because nobody else has tried it means the DL CEO is wrong according to you and your dad. Thanks Warren Buffett.



Bye Bye---General Lee