US airlines rack up record profits from baggage fees
$1.7 billion collected in first half of 2012
- Duration 4:04
- Date Sep 26, 2012
$1.7 billion collected in first half of 2012
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-- airlines are making billions of dollars off our baggage.
And there's a new report that warns those extra fees are going to get worse.
-- visitation department airlines raked in close to two billion dollars in luggage fees during just the first half of this year.
And they are just nickel and dime and folks for checked bags anymore carries including -- I don't even know that -- And spirit now charge for carry on luggage carry on luggage and spirits case it'll soon be a hundred bucks if you pay at the gates.
Just to carry your own bag on board they ought to carry the dang thing for you for that.
Depending on your airline you could wind up paying even more to change your flight or if you want a window or an aisle seat.
You may even have to pay to print your boarding pass at the airport good -- -- The airline folks claim they're trying to cover rising fuel costs and they're not helping matters at all with the less competition.
Only five major airlines now handle almost 9% of all the -- traffic in the country.
And you've you've probably heard there's talk of a merger between US Airways and American that would make things worse for all of us -- better for all of them.
Let's bring in Scott Brenner former senior official Federal Aviation Administration is currently the vice president Gephardt government affairs good to see -- hey -- it's my understanding that some of these fees that we pay are supposed to go to things that help us -- safer but that they're not using those fees for that matter.
Now you're you're you're exactly right shipped to -- little background as I mean the aviation system was set up in a matter which the users actually paid.
So every time you bought a ticket.
A portion of that price would go into the aviation trust fund that fund would then be used to improve airports get better runways improve our air traffic control system.
That's still is true on the ticket tax but now these extra fees the airlines are charging.
Now that's going into the trust fund so taxpayers are being asked to pay for middle all -- taxpayers.
Apps that where's the money come -- line up perhaps -- -- -- aviation trust fund AA is plummeting in the -- -- out of money they have that account now.
Because you don't see as much money going in there anymore or the airlines are finally making some money and we're not seen any benefit for -- for that taxpayer.
I was gonna say the airlines were all about to crumble we worried about a -- after the attacks of 9/11 and they barely held on now are they back in the black and isn't it time to.
But you know I I think the airlines you don't find -- what everyone I mean the consumers find -- gonna have a final decision.
But then again the airlines really do benefit from the system we have set out and they should be paying.
For the system that they use it's not it's not cheap to put in a new air traffic control system we're still -- an air traffic control system that came up in the fifties.
We need better runways we need better airports we needed more up to date -- air traffic control system that cost money.
Is is there anybody out there to say no you can't charge more fees for more things airlines or -- they just do whatever they want.
Finding it's really had -- up to the consumer at the end of today.
Mean you know allegiance -- at some of those guys I think they'll probably see a little bit blow back but those guys have been -- especially they were in the forefront of charging for everything.
And making some money off of it.
Elise and -- West Coast thing or something -- it is.
Well I mean.
It's not my place to sit around and in disparage people -- companies -- -- Amazing ever -- spear you know it's.
It's not that it's it's it's different than the others you know.
And ship being yeah and I think the large apartment just fine overseas recently.
No bag fees over there so when you get on the aircraft nobody is -- toting you know two or three bags and stuff and in the overhead bins.
The you know flight attendants are getting hit in the head with bags coming out there it's just that much more pleasant experience you board faster you depart faster playroom -- the overhead.
Something they should start looking at how consumers are treated.
Did that you know the one thing it is great as this new EZ pass thing they have.
With security there if if you if your frequent flyer and you and you can get it it it's it's terrific to have -- at LaGuardia and to change the world.
No absolutely but that's not quite look at TSA some has got to pay for TSA aviation trust fund should help about -- -- TSA -- man who favor.
Who who who remember -- talk to Scott thanks so what is step.
We heard from governor --