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Thu, Sep 22, 2011

The Era Of The $400 Fee Is Here

USA Today Survey Finds Airline Fees Keep Escalating

When they first started popping up a few years ago, the new list of a la carte fees charged by airlines were a nuisance. Now, they're rising to the point at which fees could cost you more than your seat under some circumstances. USA Today notes that some fees for overweight checked bags have now passed the $400 milestone.

Among the more significant increases, fees for the first checked bag now start as high as $43. Most airlines now charge a fee when booking so-called "free" flights earned with your frequent-flier miles. Changing a reservation can cost between $50 and $250 depending on the airline.

Spirit Airlines has distinguished itself as the only US airline charging for carry-on bags so far. If you don't fly Spirit regularly, not knowing about the fee even carries its own extra charge. That carry-on will cost you $30 if you notify the airline in advance when booking, $35 if you tell them by phone, and $40 if you wait to notify them at the airport.

But the big one is the fee for an overweight checked bag on an international flight. Continental wants $400 for overweight bags on most international routes, and American Airlines charges $450 on flights to Asia.

The airlines say the fees separate out optional costs to keep base fares low for customers who travel light and know what they're doing. Industry critics point out the revenue from a la carte fees conveniently escapes federal taxes that support airport and ATC improvements. Consumers are frustrated because, despite efforts by the US Department of Transportation to force disclosure of the fees on the airline websites, it's tedious to compare them among airlines when shopping.

There may be little incentive for the escalating fees to stop. In the 2010 JD Power & Associates survey of customer satisfaction with airlines in North America, the declining satisfaction scores bottomed out in 2009, and rebounded in 2010.

There is one US airline which still has zeroes in almost every a la carte fee column, even for ticket changes, with only a $10 fee for priority boarding. It's Southwest Airlines, famous for its "Bags Fly Free" promotion.

FMI

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