Advertisement

Airlines made US$33 billion from baggage fees worldwide last year, and they could make even more this year

  • Last year’s estimate is up almost 15 per cent from 2022, and it’s the first time it’s crossed US$30 billion since before the pandemic
  • Carriers could be set to make even more this year, as several US airlines have upped their checked bag fees

Reading Time:1 minute
Why you can trust SCMP
Airlines made more than US$33 billion from baggage fees in 2023. Photo: Shutterstock

Baggage fees alone were worth an estimated US$33.3 billion to airlines last year.

Advertisement

That’s according to a report from IdeaWorksCompany, a consultancy for airline ancillary revenues, and car rental firm CarTrawler.

IdeaWorks’ report analyses revenue disclosures from around 120 major airlines around the world, before collating a global estimate.

The fees are mostly for checking baggage, as well as added costs for heavy bags and larger carry-ons.

Last year’s estimate is up almost 15 per cent from 2022, and it’s the first time it’s crossed US$30 billion since before the pandemic.
Advertisement

Back in 2019, baggage fee revenue was worth 3.7 per cent of airlines’ revenue, whereas last year it was estimated at 4.1 per cent.

Advertisement