Baggage Fees Boost Airline Profits

Billions of dollars in recently imposed baggage fees and charges for reservation changes are the only thing keeping airlines in the black.

The nation's 15 largest carriers collected a combined $3.5 billion in bag fees in 2012, up 3.8% from 2011, according to the Bureau of Transportation Statistics. Fees for changing a reservation totaled $2.6 billion, up 7.3%. The airlines took in $159.5 billion in revenue last year and had expenses of $153.6 billion, according to the government. That 3.7% profit margin comes entirely from the baggage and change fees.

Delta Air Lines once again took in the most fees — $865.9 million from baggage alone — but it also carried more passengers than any other airline. Delta collected $7.44 per passenger, about average for the industry. Low-cost carrier Spirit Airlines collected the most, an average $19.99 per passenger in baggage fees last year. The government only requires the airlines to report revenue from baggage and change fees.

The change fee on the four largest carriers is now $200.