“With the spread of coronavirus, airlines are unfortunately experiencing unprecedented financial turbulence. However, in order to recoup the estimated $314bn in revenue lost this year, there is reasonable concern that airlines may hike up ancillary costs once travel restrictions are lifted”, says SendMyBag’s CEO and Founder, Adam Ewart.
The US federal Bureau of Transportation Statistics has announced that airlines made a combined $5.8billion in revenue on baggage fees last year, nearly a billion dollars more than in 2018 because of fee increases and strong travel demand. Together with $2.8 billion in ticket change and cancellation fees, airlines made $8.6 billion in key ancillary revenue streams in 2019.
With this in mind, SendMyBag, an international luggage delivery service, has put together infographics demonstrating a history of ancillary and baggage revenue charges in the US.
CEO and Founder, Adam Ewart shares his comments on the Bureau of Transportation Statistics, and what it could mean for the UK travel industry and consumers, particularly as airlines begin restarting operations amid the coronavirus pandemic: “Since Flybe became the first UK based airline to charge for checked baggage in 2006, ancillary revenue has increased exponentially. Initially, more and more airlines followed suit and began charging for baggage, but it wasn’t long before these hidden fees were applied elsewhere: from priority boarding to seat reservation. The federal Bureau of Transportation Statistics has now announced that US airlines collected $5.8bn in baggage fees last year, and the UK is on a similar course.
With the spread of coronavirus, airlines are unfortunately experiencing unprecedented financial turbulence. However, in order to recoup the estimated $314bn in revenue lost this year, there is reasonable concern that airlines may hike up ancillary costs once travel restrictions are lifted. This would see passengers having to pay more across a greater variety of ‘added extras’, potentially including rising baggage fees and seat and ticket change fees, as well as increasing costs on other less traditional ancillary revenue streams such as in-flight Wi-Fi. Although the current circumstances are regrettable, it shouldn’t be down to loyal customers to keep airlines afloat, particularly when they may be facing financial difficulties of their own.”
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
