According to the U.S. Department of Transportation, U.S. commercial airlines collected over $3.5 billion in baggage fees in 2014. Some airlines even charge passengers to bring carry-on bags onto the plane. How do baggage fees affect traveler's behavior? What is a potential cost to the airline from this policy that might offset the benefit from the bag revenues?




Passengers may pack less to minimize fees or check baggage. Carrying less baggage can lead to fuel savings and a lighter plane.


Passengers may look for flights at other airlines or stop flying altogether.


Airlines will experience an increase in fuel costs requiring them to increase fares.


Passengers will vacation more and not care about the increase in the fees.