Airlines raked in more money in extra fees last year than ever before—a whopping $148 billion, according to new research from IdeaWorksCompany, an aviation consultancy.
The previous record of $109.5 billion in airline fees was set in 2019. Last year's total bested that already lofty figure by 35%.
The fees we're referring to here are all those additional charges that airlines pile on top of the base ticket price: for checked luggage, seat selection, priority boarding, in-flight food and drink, and, in some cases, overhead bin space. Nearly all of those things were once included in the price of an airline ticket.
But nowadays, the cheaper the base fare, the more likely it is that the airline will try to make up for that discount by charging passengers more fees at every turn.
That's the whole business model of most so-called low-cost carriers, but basic economy tickets sold by traditional airlines put passengers in much the same situation.
In the aviation biz, the considerable sums airlines reap from these fees are referred to as "ancillary revenue."
But can something be ancillary when it makes up such a huge chunk of a company's income?
As a matter of fact, the IdeaWorks report found that five airlines now generate more cash from "ancillary" fees than from selling plane tickets.
You read that right: Extra fees accounted for more than 50% of the 2024 revenue for airlines whose ostensible main purpose is to sell flights.
At fee-happy Frontier Airlines, where the ancillary has become the primary, an incredible 62% of the year's revenue came from extra charges, up from 56.2% in 2023.
Frontier has the dubious distinction of being the first carrier to break the 60% threshold in ancillary revenue. At this point Frontier is basically a fee generator that happens to operate flights on the side.
And the IdeaWorks research shows that Frontier is not alone.
Airlines that make more money from extra fees than ticket sales
- Frontier Airlines (62% of total revenue from extra fees)
- Spirit Airlines (58.7%)
- Volaris (55.3%)
- Breeze Airways (54%)
- Allegiant (52.9%)
The percentage by which fees make up each company's total revenue went up across the board in 2024 compared to 2023, when only two airlines (Frontier and Spirit) pulled in more cash from fees than tickets.
Will the U.S. government do anything about airline fees?
If you're waiting for the U.S. government to rein in airline fees, you can expect lengthy delays (another airline specialty, incidentally).
In 2024 the Biden administration issued a rule that would have at least required airlines to "tell consumers upfront what fees they charge for a first or second checked bag, a carry-on bag, and for canceling or changing a reservation."
Airlines would still be able to pile on the extra charges, mind you, but they couldn't hide them, giving travelers more transparency about the true price of a ticket before purchase.
But the airlines issued a challenge in court and a federal appeals judge blocked the regulation.
As for the current Department of Transportation, the Boston Globe points out that "under the Trump administration, the DOT is currently dismantling passenger protections put in place under Biden, such as refunds for extreme passenger delays."
According to Frommer's contributor William McGee, U.S. airlines would like to go even further, lobbying, for instance, to get rid of regulations requiring performance reports that publicly reveal data on airline cancellations, delays, luggage mishaps, and consumer complaints.
If airlines are allowed to make their own rules, you can bet they'll continue to grant themselves the right to nickel-and-dime you to death.