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New fees mean turnaround for airlines
Kyrgyzstan News.Net
Tuesday 22nd July, 2008
New travel fees have meant hundreds of millions of dollars a year for beleaguered airlines.
Plane tickets have been cut to bare bones with few extras on board.
Wall Street analysts say with the price of oil now on the decline, the new ticketing could actually save the airlines.
US Airways Group for example, expects to raise an additional $400 million to $500 million annually.
Besides bag charges, it has added charges for soft drinks and choice seats in coach.
Meanwhile, JetBlue hopes to bring in about $40 million from customers buying seats with extra leg room this year.
Its $15 fee for a second checked bag is expected to translate into about $20 million in additional revenue.
United, which expects a $3.5 billion fuel bill this year, said it could see $275 million in new money from checked luggage fees as well as other baggage charges.
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Comments on this story
wacama
07-23-08, 02:04 AM |
New fees mean turnaround for airlines
Skyway bandits is now in the air industry. I think that is too much.It they cut down all the benefits and the golden parachutes of the airlines executive pay and other benefits it will lower cost of the airlines
tickets and do not need the extra fees. All those extra fees will invites public away from using the airline as a mode of travel.
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