US airline passengers tipped to face higher prices this year

US airline passengers should prepare for paying higher checked-bag fees and fuel surcharges in 2010 as the industry tries to return to profit.

Published: 18 Jan 2010

US airline passengers should prepare for paying higher checked-bag fees and fuel surcharges in 2010 as the industry tries to return to profit.

Delta Air Lines Inc., United Airlines and Continental Airlines Inc. are raising the cost to check a first and second bag this month, reported Bloomberg. The higher fees follow recent $20 increase in the round-trip fuel surcharge on flights between the US and Europe by the five biggest carriers with international service.

“Passengers will face higher prices as we go through this year,” David Swierenga, president of consultant AeroEcon in Round Rock, Texas, told Bloomberg. “The airlines recorded a big loss again in 2009, and they were unable to raise prices through most of that year.”

US Airways has raised its online baggage check-in fee to match that of Continental Airlines and Delta Air Lines.

Starting Monday for travel on or after February 1, US Airways will charge its customers $23 to check their first bag online, up from $20, and $32 for the second bag, up from $30.

United said it will now charge $25 to check the first bag and $35 for the second. That’s $5 more than it charged previously. It takes effect on tickets bought beginning Thursday for travel after January 21.

Airlines collected at least $2 billion through so-called ancillary charges in 2009’s third quarter, according to the Bureau of Transportation Statistics.

The nine largest US airlines had combined net losses of about $3 billion through the first nine months of 2009.

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