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Thursday, September 24, 2009

UPDATED: Billions for airline change, cancellation, other fees

UPDATE: I posted the entry below Thursday evening. USA Today looked deeper into the release of news by a federal agency about change and cancellation fees. Here's a report on how much total revenue, including bag fees et al, airlines collected in the first half of 2009.

The U,S. Bureau of Transportation Statistics released a report today on the revenue U.S. airlines get from fees they charge to change or cancel a ticket. And despite how long I've followed the airline business, the numbers stunned me. The total for the first two quarters of 2009 were almost $1.2 billion. Yes, that's right, billion, and that's just for half a year.

The report -- and I can't remember seeing a breakout before by BTS of this data, although it may have been there all along -- broke out revenue data for most of the nation's scheduled airlines. The only carrier missing from the list ... try to guess now ... is Southwest. Of course. Southwest doesn't charge change fees so it has nothing to report.

Some of the big numbers for major airlines: American, $225 million; Northwest, $206 million; Delta, $187 million; United, $159 million; US Airways, $131 million; and Continental, $119 million. As just one example, American's revenue represents about 4.6 percent of its total revenue for the first six months of 2009.

Forgive me for not thinking much about this before, and thus my great surprise to realize how dependent most carriers are on the flow from each time a traveler has to make a last minute change. That will be $100 for a change in a computer system that costs pennies, and these days, may well free up a seat on a flight for sale at a higher fare. I won't ask again if any airlines might consider doing the consumer-friendly thing and reduce or eliminate some of the fees. They've got us right where they want us. 

 
Posted by Tom BELDEN @ 6:19 PM  Permalink | 4 comments
Comments   
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 5:16 AM, 09/25/2009
    Also..usairways charges you to REDEEM miles not to record the miles, for flights you have already PAID for...so, your paying twiece ,once to fly and again to redeem...
    — STEVE5444
  • 0 like this / 0 don't   •   Posted 12:10 PM, 09/25/2009
    Not so fast Masswhole... I'll fly Southwest glady anytime they can get me where I want to go in a reasonable schedule. SW has more room than most domestic carriers (coach/economy), all leather seating, free sodas and snacks (on longer flights), friendly people, and virtually no fees...what's "low-rent" about that? Not to mention they have one of the most passenger-friendly rewards programs going, no charge to change a reservation. Those of us who remember PHL before SW arrived are glad they came (still wish they had chosen ABE though).
    — akh
  • 0 like this / 0 don't   •   Posted 3:38 PM, 09/25/2009
    By far, US Airways is the most unfriendly airline to fly. On my go-to list, they are dead last. Several choices before them, that's for sure.
    — Joe Gonnelli


4 comments
About Tom Belden
Tom Belden has been reporting about Philadelphia International Airport and other air travel subjects for more than 20 years, writing columns for The Inquirer's Travel and Business sections. His reporting (with colleague Craig McCoy) on baggage handling problems in Philadelphia have been credited with helping to improve the system. His previous blog was called Road Warrior. He can reached at tbelden@phillynews.com.
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