Checked bags are a big business for U.S. airlines, bringing in more than $7 billion in revenue last year, according to data from the Bureau of Transportation Statistics. The fees have brought more revenue to the airlines than it ever had prior to the pandemic, the data shows.
Airlines began shifting their checked bag policy in recent years to keep up with what they say are rising operational costs, including higher prices for fuel and increased wages.
Most recently, Southwest Airlines announced it will start charging $35 for the first checked bag — after more than 50 years of only charging for a third bag. Changes at Southwest came amid mounting pressure from activist investors to improve its financial performance. The airline in September predicted that new fees would lead to $1.5 billion a year in revenue.
Last year, JetBlue brought Uber-style surge pricing to bag-check fees, making it more costly to check luggage during peak travel periods. American Airlines also increased its fees in 2024 from $30 to $35 for the first checked bag.
Breaking down the revenue from checked bags for U.S. airlines
Checked bags brought in about $7.27 billion in revenue last year for Alaska Airlines, Allegiant Air, American, Breeze Airways, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue, Silver Airways, Southwest, Spirit Airlines, Sun Country and United Airlines, according to the government’s data that was last updated on May 6.
That is up from $7.07 billion in 2023, Bureau of Transportation Statistics’ data shows.
In 2022, U.S. airlines made over $6.7 billion in bag fees, another major jump from the $5.3 billion made in 2021.
American, Delta and United — the three largest U.S. airlines — made over $1 billion each last year on checked bags — and their revenue from it has been climbing since the COVID-19 pandemic halted air travel in 2020.
When the pandemic hit, total checked bag revenue plummeted to $2.84 billion in 2020, down from $5.76 billion in 2019.
Kiki Intarasuwan is a news editor for CBS News & Stations.
contributed to this report.
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