George S. May Business Blog

Delta, United, Continental Airlines all raising baggage fees

Reuters reported that Delta Air Lines Inc., United Airlines and Continental Airlines Inc. are all getting set to raise bag fees again.

“The higher fees follow last week’s $20 increase, to as much as $280 in the case of American Airlines, in the round-trip fuel surcharge on flights between the U.S. and Europe by the five biggest carriers with international service.

“Passengers will face higher prices as we go through this year,” David Swierenga, president of consultant AeroEcon in Round Rock, Texas, said today in an interview. “The airlines recorded a big loss again in 2009, and they were unable to raise prices through most of that year.”

Basically, because Americans don’t have extra money to travel with, U.S. carriers have been forced into luring in their customers with low prices. So, instead of compensating for their passenger ‘deficit’, so to speak, by over charging you to fly, they just overcharge you to be comfortable. Thanks guys.

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