ANCHORAGE, Alaska — The U.S. airline industry made more than $900 million from baggage fees in the third quarter. The federal Bureau of Transportation Statistics says airlines made another $590 million from reservation change fees, for a total of nearly $1.5 billion in add-on fees.
The fees have been a lucrative source of revenue for airlines during the past few years, but travel experts predict airlines will soon reach the limit of what they can charge for bags and may look to other places to add fees.
"I think some of those will include in-flight wi-fi, continuing to bundle things like premium boarding and premiums seats, some new meal options and other things like that,” said Beth Caulfield, an editor for AOL Travel.
Baggage fees have been so lucrative for the airlines that some hotels are now offering to pick up the tab on some of those charges in an effort to win the business of arriving travelers.