Desperate for cash and battling ever-rising fuel prices, airlines have adopted the position that every bit of revenue helps. A number of airlines have raised fees in recent weeks, with American Airlines Inc. charging at least $15 per checked bag, Midwest Airlines joining the herd billing for a second bag and a number of other carriers raising fees attached to everything from using their call centers to sitting in an exit row. But no carrier has been as creative as bankrupt Frontier Airlines Holdings Inc., who last Friday upped a number of fees,
including a $100 levy for carrying scuba equipment and an equal amount charged to passengers bringing antlers on board.
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There are good reasons airlines are trying to get creative with fees instead of simply raising ticket prices. Fees are easier to make stick than higher fares since many fees do not come up on travel search engines, meaning that airlines do not have to worry that a fee will make them less competitive at the point of sale. Airlines also worry that high ticket prices will eventually choke off demand, negating any revenue boost they hope to receive.
But nitpicky fees also tend to annoy customers more than higher prices, and could be more likely to discourage repeat business. New fees also risk influencing customer behavior in ways that could be disruptive to operations, for example leading to ever-larger carry-ons, even more cramped cabins and longer lines at check in.
Still, with fuel dragging down profitability, fees are only likely to increase. After all, every antler helps. - Lou Whiteman
See Frontier's list of new fees
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