Listen weekdays from 1-3pm ET
(No audio? Try our help)
Recent shows | More media

Listen Live: Mon-Fri 1-3pm ET

Posted: 1:30 p.m. Wednesday, July 25, 2012

Nation's airlines continue with their fee spree

By Clark Howard


The nation's airlines have lost their appeal of a law requiring full disclosure of the true fare price in advertisements, including all junk fees and taxes.

Meanwhile, a new report shows Spirit Airlines collects $2 in junk fees for every $3 in airfare. The airline that charges the biggest amount of fees, however, is United. Last year, United collected $5 billion in total junk fees after customers already purchased their ticket.

We're still in early innings of this path to profitability for the nation's airlines. More and more, they will split everything out. I was looking at a seating chart and there were fees for an aisle seat, a window seat, maybe a higher fee if you wanted the first 10 rows of coach. That's just one example. We're all familiar with baggage fees, change fees, and frequent flier mile redemption fees.

Let's take a look at just one fee -- the fuel surcharge. U.S. airlines have raised this by more than 50% even though the cost of fuel went up just over 20%. So it's just a made up surcharge. That's why I love the court decision that requires full disclosure of all fees before you buy a ticket.

For example, I have no problem with Ryanair wanting to charge people to use the toilet, so long as it's disclosed up front. My point is, I don't care what the fees are. To me the important issue is do you know before you're already sucked in?

Who knows what fees will be next. Of course, this is not without precedent. If you remember People Express airlines, once considered the most innovative in the world, they had a fee for everything. I remember people were outraged when they would charge 50 cents to get a soft drink on a flight. But you can come with your own food on the plane, while somebody else may want to buy something on board. So I think the fee is fair. Just tell me what you want to charge.

 
 

Clark's Latest Tweets

 
 

© 2013 Cox Media Group. By using this website, you accept the terms of our Visitor Agreement and Privacy Policy, and understand your options regarding Ad ChoicesAdChoices.