Monday, July 1, 2013

Ticket Change Fees Driving Airline Profits

Airlines are getting more income from ticket change fees and it is going straight to profits. At least, that is what some new information from the US Department of Transportation shows in reporting Change Reservation Revenue for the first quarter of 2013. Make a reservation and then need to change your flight? It  is costing more:

Change Reservation Revenue in 1 Q

RankAirline1Q (in millions)
1Delta$198.5
2United$176.9
3American$132.0
4US Airways$83.5
5JetBlue$36.7
6Alaska$21.8
7Southwest$9.2
8Spirit$7.9
9Virgin America$7.7
10Hawaiian$4.6
11Frontier$3.0
12Allegiant$2.2
13Sun Country$.46
All$685.176
Source: U.S. Department Of Transportation

Charges are becoming more common because domestic airlines have been reducing flights so that planes are fuller. This is a good thing for airlines since they are getting more revenue from their seats. However fewer seats in the air means it is tougher for passengers to find a seat, tickets for those seats are getting pricier. But now it is also getting pricier and more common for travelers to pay fees when they have to change their tickets.

Of course, the big money maker for airlines still are those horrible bag fees. The same report stated airlines captured $2 billion off those fees.

Anyway, the lesson here: when you travel, make sure you are getting the right ticket. Changing circumstances or just changing your mind will cost you in more airline fees.




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