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Airlines charge progressive luggage fees because they have discovered that flying air freight on passenger flights is highly profitable. Air freight rates gene
by jgbmlg 6y ago
Airlines charge progressive luggage fees because they have discovered that flying air freight on passenger flights is highly profitable. Air freight rates generally range from $1.50–$4.50 per kilogram. Airlines typically price airfreight at 4–5 times that of road transport and 12–16 times that of sea transport. 1st Bag: $30 · 2nd Bag: $55 · 3rd Bag: $180 · 4th Bag: $200 · Each bag maximum 50 lb/22 kg. Companies shipping cargo like smartphones that are very valuable when priced by weight (a kg of iphones is worth thousands), don't care if they have to pay 15 times the ocean transport rate, if they can get them to market much faster and securely by air transport. Airlines don't want to lose space in the cargo hold for that business because their passengers want to check 2 bags and their golf clubs on vacation with them. The baggage costs are as much about discouraging checking baggage and incentivizing carry-ons as they are about makeing extra money off the passenger business.
- dreamcompiler 6y agoThey also charge for luggage because it gives them a way to make the initial ticket price look cheaper, while effectively making more money. Extra cost add-ons are the name of the game in the airline business now (and many others). With luggage, it's kind of ironic because carry-ons slow down turnaround time and that eats into profits. But I presume this doesn't completely offset the extra profit generated from freight or they wouldn't do it.