During the third quarter of 2018, airlines collected nearly $1.3 billion in baggage fees, marking the 10th consecutive quarter with fees exceeding $1 billion.
Baggage fees during the first nine months of the year totaled more than $3.6 billion, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics.
Fees totaled a record $4.5 billion in bag fees in 2017.
Additionally, airlines collected $2 billion in reservation change and cancellation fees through September. This brings the ancillary fees passengers have paid to more than $5.6 billion.
The high fees have caused the American Association of Airport Executives (AAAE) to call for U.S. carriers to drop their opposition to adjusting the federal cap to the Passenger Facility Charge (PFC). PFC is a local airport user fee that finances the construction of new gates, terminals, runways, and other airport improvements that are Federal Aviation Administration approved projects.
The cap has not been adjusted since 2000.
“Ho-Ho-Ho has become Dough-Dough-Dough this holiday season for the airlines with billions in bag fees,” AAAE President and CEO Todd Hauptli said. “Hope they enjoy their last free sleigh-ride before the new Congress reins them in.”
PFC is not a tax and never goes to the federal Treasury, the non-partisan Congressional Research Service verified.