Airlines Collect $1.38 Billion In Fees In Three Months

It's hard to know which businesses have embraced fees with the most enthusiasm, banks or airlines. Both, in recent months, have found ways to impose new levies on consumers.

The U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reports U.S. airlines collected $1.38 billion from baggage fees and reservation change fees in the first quarter of 2011, which helped airlines counter increased costs of fuel.

According to the report, airlines received $784 million from baggage fees and $598 million from reservation change fees in the first quarter. These are the only fees paid by passengers that BTS can identify separately. All other fees paid by passengers are included in larger categories with other types of revenue.

One consumer, Leigh, of Brooklyn, N.Y., discovered that buying a ticket on Spirit Airlines can carry a fee.

“On August 28th, I attempted to purchase a ticket on Spiritair.com, only to have the website continuously time out,” Leigh told ConsumerAffairs.com. “I therefore, called the company to book over the phone and was forced to pay an extra $10 fee for 'phone reservations.' I asked why I was being punished because their website wasn't working and was simply told there was nothing they could do.”

Airlines say charging fees allow travelers to cut their costs by not checking a bag or asking for a pillow. But it also allows airlines to advertise low fares that, for most travelers, aren't so low once fees are factored in.

In July, the department issued a notice of proposed rulemaking that would require airlines to report 16 additional categories of fee revenue in addition to the baggage and reservation change fees to provide additional airline pricing information to consumers and airline analysts.