Airlines get $1 billion from baggage fees

http://money.cnn.com/2014/12/15/news/companies/airline-baggage-fees/index.html?iid=HP_LN

Airlines get $1 billion from baggage fees

This article portrays the idea of marginal cost. Because these airlines are beginning to charge more for extra checked bags and extra pounds of weight from these checked bags, travelers have to determine how much they are willing to pay to bring their belongings. Those who do not bring so many belongings will not have to pay the extra fees because they will not check bags or as many bags. The marginal cost for those who do bring quite a load of items may not be worth it to them to bring these items in the first place.

1 Comment »

  1. formanm Said,

    December 16, 2014 @ 7:41 pm

    I wonder if airlines will reduce baggage fees since fuel is getting cheaper. Fuel is a major cost that airline companies have to pay. With cheaper fuel, airlines should make higher profits. Reducing baggage fees wont cost airline companies that much. The savings from cheaper fuel should be more then enough to cover reduced baggage fees.

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