Airline baggage fees top $1 billion for fifth straight quarter
The American Association of Airport Executives (Airline baggageE) has renewed its call for the U.S. airline industry to drop their opposition to a pending bipartisan proposal in Congress to modernize a local airport user fee known as the Passenger Facility Charge (PFC) that finances the construction of new runways, terminals, gates and other airport improvements.
According to data by the U.S. Department of Transportation’s Bureau of Transportation Statistics, airlines collected nearly $1.2 billion in baggage fees during the second quarter of 2017, a new record and the fifth consecutive quarter that bag fees exceeded the billion-dollar threshold.
Airlines collected another $737 million in reservation change and cancellation fees during the second quarter.
At the same time the airlines are collecting record baggage fees from their customers, they continue to oppose a modest bipartisan proposal to update the federal cap on local PFCs to $8.50 for originating passengers that was included in the annual funding bill for DOT (S. 1655).
That measure, which is strongly supported by Airline baggageE, was approved by the Senate Appropriations Committee July 27 on a unanimous 31-0 vote. ■