Blog | New Law Aims to Reduce 50%+ Growth in Air Ancillary Revenue

30

Nov
2011
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New Law Aims to Reduce 50%+ Growth in Air Ancillary Revenue

A new bill proposed in the U.S. Senate would limit airline baggage fees, which have become a major gripe for travelers but are a leading source of profit for the industry.

Chart: United Ancillary Revenue Growth

Chart: United Ancillary Revenue Growth

 

View Dataset: Chart: United Ancillary Revenue Growth

 Domestic carriers collected nearly $3.4 billion in baggage fees in 2010, according to the U.S. Department of Transportation. Those fees accounted for only about 2 percent of their total operating revenue but represented a big slice of their $7.7 billion in net earnings.

The industry reported net earnings of about $4 billion between January 2009 and June 2011, according to a Triangle Business Journal analysis of data from the federal agency; subtracting out the $7.8 billion in baggage fees collected during those 10 quarters would have left the industry with a multi-billion-dollar loss.

Source

Article: http://www.bizjournals.com/dayton/news/2011/11/25/new-legislation-to-limit-airline-bag.html?ana=yfcpc
Data: https://app.dataswell.com/portal/index.html#dataset/108/view/481


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