Delta #1 at Something: Baggage Fees of $952 Million

[Heavy Set]

Hey the pilots can now more legitimately ask for a raise given all of the extra cash coming in... Yet another bargaining point for the next round of contract negotiations...


Delta No. 1 in baggage fees: $952 million
Orlando Business Journal

Date: Monday, June 13, 2011, 4:23pm EDT



Delta Airlines for the second consecutive year took in more baggage fees than any other U.S. airline and also was No. 1 in reservation cancellation/change fees.

The US Transportation Department Bureau of Transportation Statistics (BTS) reported Monday Atlanta-based Delta (NYSE: DAL) collected $952.3 million in baggage fees in 2010, almost double the $481.7 million it got in 2009 and about five times as much as the $177.1 million it received in 2008.

Delta took in more baggage fee revenue than any American carrier in both 2010 and 2009, and ranked third for baggage fee revenue in 2008.
Delta’s 97.7 percent increase in baggage fees from 2009 to 2010 was about four times the industry’s rise of 24.4 percent.
Combined, U.S. airlines took in about $3.4 billion from baggage fees in 2010, $2.7 billion in 2009 and $1.1 billion in 2008 BTS said.

In terms of reservation cancellation/change fees, Delta was No. 1 with $698.6 million. It ranked second in 2009 with $406 million and was 11th in 2008 with a mere $18.9 million.

Combined, U.S. airlines took in $2.3 billion in reservation cancellation/change fees last year, $2.4 billion in 20009 and $1.7 billion in 2008, according to BTS.

Delta Airlines for the second consecutive year took in more baggage fees than any other U.S. airline and also was No. 1 in reservation cancellation/change fees.

The U.S. Department of Transportation Bureau of Transportation Statistics (BTS) reported Monday Atlanta-based Delta (NYSE: DAL) collected $952.3 million in baggage fees in 2010, almost double the $481.7 million it got in 2009 and about five times as much as the $177.1 million it received in 2008.

Delta took in more baggage fee revenue than any American carrier in both 2010 and 2009, and ranked third for baggage fee revenue in 2008.
Delta’s 97.7 percent increase in baggage fees from 2009 to 2010 was about four times the industry’s rise of 24.4 percent.

Combined, U.S. airlines took in about $3.4 billion from baggage fees in 2010, $2.7 billion in 2009 and $1.1 billion in 2008 BTS said. In terms of reservation cancellation/change fees, Delta was No. 1 with $698.6 million. It ranked second in 2009 with $406 million and was 11th in 2008 with a mere $18.9 million.

Combined, U.S. airlines took in $2.3 billion in reservation cancellation/change fees last year, $2.4 billion in 20009 and $1.7 billion in 2008, according to BTS.

 

[johnsonrod]

Hopefully fuel costs will also come down and then pilots will have more of a cash bounty to target. We all know those fees will never go down - no legacy carrier will likely reduce current cash-cow fees.

 

[Jar Jar]

History of Airline industry: Increased profits today means decreased revenues tomorrow.

Its all smoke and mirrors. It doesn't matter if the income comes from fees or fares, a profitable airline will use that margin to undercut competition; it just takes a year or two for the margins to erode back to 1-2%.

 

[miles otoole]

History of Airline industry: Increased profits today means decreased revenues tomorrow.

Its all smoke and mirrors. It doesn't matter if the income comes from fees or fares, a profitable airline will use that margin to undercut competition; it just takes a year or two for the margins to erode back to 1-2%.

Airlines have learned from history, however. Case in point, capacity discipline leading to the maintaining of higher fares/yields. In years past, profitable years led to massive increase in capacity And resulting erosion of fares. No increase in capacities this time around. Those who don't learn from the past are doomed to repeat it. As well, past results are no indication of future returns.

 

[stall022]

Airlines have learned from history.

LMAO...

Airlines are like a teenage with a platinum plus credit card, They spent till they are broke then they expect dad (the government) to come bail them out when they can't pay the bill. Unfortunately airline history has and will repeat itself.

 

[1st Rate]

Well good for Delta and all the other airlines who charge for baggage service. Fees are good if people are willing to pay them (as demonstrated) than so be it!!

 

[Whataburger]

Since Delta makes more on bags, shouldn't this thread be in the "CARGO" section?