Airlines take in nearly $4 billion in additional fees

Despite the fact that far fewer people are traveling, the nation's airlines are raking it in when it comes to collecting additional fees for checked baggage, re-booking flights, seat assignments, carrying pets and so on. Department of Transportation (DOT) figures show airlines collected $3.8 billion in fees during the first six months of the year, up more than 50% from the $2.3 billion in fees charged in 2008.

The primary reason for the dramatic increase from a year ago is that fees are considerably higher than in 2008, as airlines have bit-by-bit increased the amount charged for various services as they try to find just how much they can charged without losing even more travelers. Of the $3.8 billion, $1.24 billion came from baggage fees which amounts to a staggering $200 million average per month. While baggage fees are probably the least popular of the extra charges imposed, they are proving to be a financial shot in the arm to every airline, with the exception of Southwest Airlines which has a major ad campaign on-going highlighting "Bags Fly Free."

Second to baggage fees comes charges for re-booking or canceling a trip. These fees increased to $606 in the second quarter. The traveling public's grudging acceptance of these fees likely has made them a permanent feature of airline travel, with virtually no one expecting them to go away when the economy recovers.

Baggage fees collected in the second quarter of this year include (in millions): American and Delta, $118.4; US Airways, $104.1; United, $67.4; Northwest, $67.2. Even JetBlue, which allows one free checked bag per passenger, gathered in $12.4 million in bag fees. These figures are even more incredible considering that passengers paying the highest non-discounted airfares and elite members of the air carrier frequent flier program are exempt from such fees.