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Update 1
To offset fuel cost United Airlines are raising the roundtrip cost by $60 and considering charging for a first piece of luggage checked-in.
Source: online.wsj.com
“Domestic flight delays cost the industry and passengers $40.7 billion in 2007″. How you interpret this study is up to you, but the Joint Economic Committee from the House and Senate included in the study it conducted, the time you (the passenger) lost while waiting at the airport, the time which you could’ve spend making money, being involved in any of your favorite activities, or quietly resting at home. Essentially, our time was estimated as valuable, which is nice, but so what?
“The cost to airlines includes $1.6 billion in fuel costs, as idling planes wasted 740 million gallons of jet fuel, the report said, releasing more than seven million metric tons of carbon dioxide into the air. This was based on the 2007 average wholesale fuel cost of $2.15 per gallon.”
Now that you are aware of these facts, which apply to all airlines, I’d like to inform you, that starting June 15, 2008 (if you bought your ticket earlier then this date, you should be spared) American Airlines will be the first carrier to charge its passengers for each bag checked in. That’s right: your first bag checked in is going to cost you $15, second - $25.
“The carrier also said Wednesday it will cut its mainline domestic capacity by up to 12 percent in the fourth quarter. Regional capacity will be cut up to 11 percent and the carrier plans to retire at least 75 regional and mainline airliners.”It won’t be a surprise to see all other airlines joining the suite.
Next thing will probably be weighting your carry-on luggage and charging you on a sliding scale for anything heavier, then 5 pounds.
Via bizjournals.com.
Click to money.cnn.com to read about the study.
