Airlines Rake In $33B From Bag Fees in 2023 and Expect More Profits Ahead
Packing your bags used to be just about fitting everything in, but now it’s also about making room for those soaring baggage fees. Last year, the top 20 global airlines pocketed $33B in baggage fees — a hefty 15% increase from the year before. Depending on the airline, checking a bag can cost anywhere from $25 to $89, prompting more travelers to pack lighter to avoid these charges.
- In 2023, bag fees made up 4.1% of global airline revenue — up from 3.7% in 2019 — making it a significant source of income for airlines outside of onboard purchases.
- In 2024, the average checked baggage fee increased by $5 — with Alaska Airlines and JetBlue hiking their first bag fees by 16.67% and 28.57%, respectively.
The cost keeps climbing: Airlines now use dynamic pricing for checked bags, meaning prices may vary based on when and where you’re flying. Different days mean different prices — busy travel days like holidays tend to have higher fees, while weekdays or off-peak seasons, they’re often lower. IdeaWorks’ President Jay Sorensen predicts that “dynamic pricing will be standard practice for the vast majority of airlines within three to five years.”
