Airlines are pocketing billions of pounds from baggage fees, with passengers in the US alone forking out $5.3 billion last year, according to the Department of Transport. The fees are a key part of what critics call a 'junk fee' economy that costs Americans an estimated $65 billion annually.
Customers are often lured by a headline price for a flight, only to find the true cost is hundreds of dollars more once baggage charges are added. The costs can escalate with every piece of luggage a passenger wishes to take. Despite a government crackdown on hidden fees, there has been no formal change to restrict bag charges so far.
This week, American Airlines announced it will now charge $75 for checked bags on all basic economy tickets. Most airlines offer one free carry-on item, which some customers use as their sole luggage to avoid the fees.
The White House has pledged to tackle junk fees across multiple industries, including airlines, hotels, and ticketing. Earlier this week, President Joe Biden announced that entertainment giant Live Nation and ticketing platform Ticketmaster will disclose the full price of tickets upfront from September, benefiting over 30 million customers.
