The move by U.S. airlines to charge extra for services that used to be included in ticket prices is just beginning, and will grow to include more European and Asian carriers, according to research from the Centre for Asia Pacific Aviation (CAPA), an aviation consultancy based in Australia.
“We are just at the start of the movement to monetize services and products passengers used to receive as part of the ticket price,” CAPA Executive Chairman Peter Harbison said in a report issued Wednesday.
Baggage fees are one of the fast growing ways airlines are earning extra cash. Others include charging for seat selection, in-flight services and products, sales of insurance, airport lounges access and sales of concert tickets, mobile phone credits and more.
U.S. airlines will earn $4 billion in baggage fees this year, CAPA estimates.
The full report is available at www.centreforaviation.com.