United and Delta collected the most money
of ConsumerAffairs-
U.S. airlines earned a record $7.27 billion from baggage fees in 2024, with American ($1.5B), United ($1.33B), and Delta ($1.06B) leading the revenue rankings.
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Ultra-low-cost carriers like Frontier ($861M) and Spirit ($774M) generated significant baggage fee income through la carte pricing models, despite lower passenger volumes.
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Southwest Airlines collected only $83 million in fees because it did not charge a fee for the first too bags in 2024, a policy it changed in 2025.
In 2024, U.S. airlines amassed a staggering $7.27 billion in baggage fees, marking a continued reliance on ancillary revenue streams as the industry rebounds from pandemic-era disruptions. The data, collected by the U.S. Bureau of Transportation Statistics andupdated May 6, 2025, reveals striking contrasts in how different carriers generate revenue from checked bags, with major legacy carriers dominating the top of the list.
American Airlines topped all U.S. carriers, raking in $1.50 billion from baggage fees over the year. The carriers consistent quarterly performancepeaking at $394.4 million in Q2highlights how embedded baggage charges are in its revenue model.
United Airlines followed closely behind with $1.34 billion, and Delta Air Lines rounded out the top three at $1.06 billion. Each of these legacy carriers operates global networks with extensive domestic travel, creating ample opportunities to levy baggage charges, particularly on economy passengers without elite status or co-branded credit cards.
Low-cost carriers, high baggage revenue
Some of the most aggressive baggage fee collectors relative to passenger volume were ultra-low-cost carriers (ULCCs). Frontier Airlines brought in $861.6 million, while Spirit Airlines generated $774.7 million. These airlines, which often offer low base fares and charge for nearly every add-on, derive a significant portion of their revenue from checked and carry-on bag fees.
Allegiant Air, despite a smaller footprint, earned $371.5 million in baggage feesmore than Alaska, JetBlue, and Hawaiiandemonstrating the strength of its fee-for-service business model.
Southwest Airlines maintained its long-standing policy of no fees on the first two checked bags. It earned $83.1 on fees for more than two bags and overweight luggage.
The airline industry began charging for checked bags after the 2008 financial crisis, when several carriers faced bankruptcy.
Full 2024 Baggage Fee Revenue by Airline (in $000s)
|
Airline |
Total 2024 |
|
American Airlines |
$1,501,329 |
|
United Airlines |
$1,335,096 |
|
Delta Air Lines |
$1,060,101 |
|
Frontier Airlines |
$861,624 |
|
Spirit Airlines |
$774,727 |
|
JetBlue Airways |
$622,494 |
|
Alaska Airlines |
$406,575 |
|
Allegiant Air |
$371,461 |
|
Sun Country Airlines |
$110,909 |
|
Hawaiian Airlines |
$87,483 |
|
Southwest Airlines |
$83,079 |
|
Breeze Airways |
$42,532 |
|
Silver Airways |
$12,540 |
|
Total |
$7,269,950 |
As airfares become increasingly modular, passengers should expect baggage fees to remain a key part of the modern flying experience.
Posted: 2025-06-05 12:11:03
