An analysis of data released by the major U.S. airlines could illustrate that the increase in baggage fees for passengers may actually be losing money for the carriers rather than making it. United, American, Continental and Delta have all seen revenues for the second quarter drop by between fifteen and twenty-one percent. Of course a lot of this is to do with the global down turn in the economy, the disappearance of the business traveller, rising full costs and a drop in capacity. However, the two airlines who allow passengers to check at least one bag onto their aircraft without tacking on a fee to do so have avoided the massive revenue declines of their rivals. JetBlue and Southwest have reported relatively small losses and some think this may be, at least in part, to do with their checked bag policies.

Some say that Southwest has lost out on the potential to make massive amounts of money by charging bag fees but others say the company may be mopping up those customers who are angered by the constant increase in ancillary fares on other carriers.

This reading of the statistics is unlikely to persuade other airlines to do away with baggage fees as it is undeniable that ancillary fares such as these are pretty much the only thing keeping many carriers in the air.

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