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Airlines Collected More Than $1.1 Billion in Baggage Fees in Q3
JT is a location-independent digital nomad traveling 250,000+ miles each year with his wife Katie.
December 14, 2016 • 7 min read
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Quick summary
US airlines collected over $1.1 billion in baggage fees from July to September 2016, setting a new record.
Legacy carriers continue to generate the most baggage fee revenue, though some saw slight declines year-over-year.
Low-cost carriers like Spirit and Frontier saw significant increases in baggage fee revenue as more travelers opt for lower base fares.
There are several strategies to avoid checked baggage fees, including holding certain travel cards, flying with airlines that offer complimentary checked bags, using travel credits, or earning elite status.
What to consider
Some travel cards provide a free checked bag for the cardholder and, in some cases, companions on the same reservation.
Not all airline-branded cards, especially from low-cost carriers, offer free checked bags as a benefit.
Elite status with major airlines typically includes a free baggage allowance, but qualification requirements can be substantial.
What you'll miss from the article
A detailed breakdown of baggage fee trends by airline and specific methods for minimizing or avoiding these charges.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
We love to help our readers avoid as many fees as possible. If you're able to take advantage of credit card benefits, checked baggage fees are some of the easiest charges to avoid. However, that hasn’t stopped airlines from hitting yet another new baggage fee record. From July through September 2016, US-based airlines collected just over $1.1 billion in baggage fees. This tops last quarter's new record by almost $28 million.
Baggage fees by airline for 2015 Q3 and 2016 Q3. Revenue reported in thousands of US dollars. Data courtesy of the Bureau of Transportation Statistics.
While legacy carriers have seen revenue from these charges flatline, American Airlines, Delta and United still top the list for baggage fees. These airlines collected a combined $703 million in fees from July-September, accounting for nearly two-thirds of the total bag fees across all airlines.
American Airlines topped the list for the tenth quarter in a row. However, AA was one of only four airlines that had a reduction in baggage fees over the same time last year, along with Delta, Southwest and Sun Country.
Spirit Airlines is piling on the bag fees. Image courtesy of Tim Boyle via Getty Images.
Meanwhile, Spirit (+46%) and Frontier (+50%) continue their explosive growth in bag fees as more budget-conscious flyers are attracted by their low base fares. For these travelers, hopefully the price was still cheaper after paying the bag fees.
Although you may pay more in baggage fees than the cost of your ticket on these low-cost carriers, overall, baggage fees are a small percentage of airline revenue. Over the same July-September range, US -based airlines collected $44.4 billion in operating revenues. This means that the $1.1 billion in bag fees account for less than 2.5% of operating revenues.
While many of our readers probably already know how to avoid paying avoidable baggage fees, let's review the ways that you're able to do so:
1. Get a Co-Branded Credit Card
The easiest way to avoid checked baggage fees on most airlines is by having an airline credit card. Many airlines offer at least one free checked bag on at least one of their co-branded cards. Here's the airline-by-airline breakdown of which cards will get you a free checked bag (or two):
American: Citi / AAdvantage Platinum Select World Elite Mastercard, CitiBusiness / AAdvantage Platinum Select World Mastercard,Citi / AAdvantage Executive World Elite Mastercard
Delta: Gold Delta SkyMiles® Credit Card from American Express, Gold Delta SkyMiles® Business Credit Card from American Express, Platinum Delta SkyMiles® Credit Card from American Express,Platinum Delta SkyMiles® Business Credit Card from American Express
United: United MileagePlus Explorer Card, United MileagePlus Explorer Business Card, United MileagePlus Club Card (first 2 bags), and United MileagePlus Club Business Card (first 2 bags)
JetBlue: The JetBlue Plus Card and The JetBlue Business Card
Alaska: Alaska Airlines Visa Signature credit card
Hawaiian: The Hawaiian Airlines World Elite Mastercard
Virgin America: Virgin America Visa Signature Card and Virgin America Premium Visa Signature Card
The information for the Citi AAdvantage Platinum card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
The baggage allowances vary across these cards, but each allows at least one free checked bag for the cardholder. Some cards offer free checked bags for others booked on your same itinerary as well.
Unfortunately, some of the biggest bag fee collectors — Spirit Airlines (Spirit Airlines Mastercard), Frontier (Frontier Airlines World Mastercard) and Allegiant — have co-branded credit cards that don’t offer a free bag.
2. Fly Southwest
The last major airline to still offer complimentary checked bags is Southwest. Each passenger can check two free bags — including golf bags and skis — up to 50 pounds and total dimensions of 62 inches. Overweight, extra-large and additional bags will set you back $75 each. It seems there were at least 151,000 of those bags checked between July-September, accounting for Southwest's $11.3 million in baggage fees.
3. Wipe out Baggage Fees With a Credit Card Fee Reimbursement
Some premium credit cards offer travel fee credits that can be used toward airline fees such as baggage costs. These include the Chase Sapphire Reserve ($300 per year), the Ritz-Carlton Rewards Credit Card ($300 per year), Citi Prestige Card ($250 per year), The Platinum Card® from American Express ($200 per year) and the American Express® Gold Card ($100 per year). If you weren’t able to avoid baggage fees otherwise, using a travel credit could be a great option.
Or, you can use points earned on your Capital One Venture Rewards Credit Card, Bank of America® Travel Rewards credit card or Barclaycard Arrival Plus World Elite Mastercard to get a statement credit for your baggage fees. However, you’ll likely want to pay for your bags when you purchase your flight if you plan on using points from your Barclaycard Arrival Plus — which has a sign-up bonus of 70,000 miles after spending $5,000 in the first 90 days — as the minimum redemption is 10,000 miles ($100).
4. Earn Elite Status
Easier said than done, but earning elite status on any of the top three bag fee-charging airlines — American, Delta and United — will earn you a free baggage allowance. Even base-level elite members (American Gold, Delta Silver and United Silver) are allowed to check one bag for free on domestic itineraries. Meanwhile, top-tier members can check up to three free checked bags.
What's your strategy for avoiding checked bag fees?
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
