English /// 06/14/08
CHICAGO -- Baggage fees are fast becoming an
unavoidable part of US flying — three of the largest carriers now charge $15
for a first checked bag.
No.
2 United Airlines and No. 7 US Airways announced new fees three weeks after No.
1 American Airlines set the precedent for the charge.
Most
US carriers already have instituted a $25 charge for checking a second bag —
part of a potpourri of new fees that reflect a struggling airline industry
passing along record fuel prices to passengers in the form of higher fares,
fuel surcharges and service charges.
As
of July 1, Southwest Airlines will be the only US carrier that permits two checked
bags for free, according to air travel expert Tom Parsons, who expects still
more service fees to come.
"The
major airlines are truly a la carte now — you don't get anything free any
more," said Parsons, chief executive of the travel Web site Bestfares.com.
"You get a tin can in the air, and anything else you pay as you go."
He
expects the legacy carriers to follow the lead of discount carrier Spirit
Airlines, which now charges extra for seat reservations — $5 for middle seats,
$10 for window and aisle seats and $15 for exit-row seats. Other airlines also
have begun charging for window or aisle seats.
UAL
Corp.'s United said its baggage fee goes into place with customers who buy
tickets beginning Friday for domestic flights of Aug. 18 or later. It does not
apply to customers flying in first or business class or those who have premier
status with United or Star Alliance, and first and second bags will still be
free for itineraries that include international flights, aside from Canada.
The
Chicago-based carrier also is increasing the fee to check three or more bags,
overweight bags or items that require special handling to $125 from $100, or to
$250 from $200, depending on the item.
"With
record-breaking fuel prices, we must pursue new revenue opportunities while
continuing to offer competitive fares by tailoring our products and services
around what our customers value most and are willing to pay for," said
John Tague, United's chief operating officer.
United
estimates the potential revenue from baggage handling service fees at about
$275 million a year. It expects the new $15 service fee to apply to one in
every three customers.
US Airways' new fee takes place for
tickets booked on or after July 9.
The
Tempe, Ariz.-based carrier also said it would cut domestic flights, shrink the
size of its fleet, slash 1,700 jobs and add a fee for nonalcoholic drinks
during flights.
"We
must write a new playbook for running a profitable airline in this new and
challenging environment," US Airways Chairman and Chief Executive Doug
Parker said in a statement.
Separately,
the steady rise of fuel surcharges continued with United, Continental Airlines
Inc., Delta Air Lines Inc., US Airways Group Inc. and Northwest Airlines Corp.
all matching the $20 increase in fuel surcharges initiated by American on most
of its domestic routes Wednesday.
UAL
shares tumbled 91 cents, or 12.6 percent, to $6.31 in Thursday trading after
crude oil prices reversed course and finished higher. US Airways shares sank 51
cents, or 15.9 percent, to $2.69 after dropping as low as $2.39 — their lowest
level in the company's three years out of bankruptcy.
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