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Ridiculous baggage fees are keeping these budget airlines afloat

“A new data report from mileage hacker site Upgraded Points shows that while baggage fees make up 3% of the overall operating revenue for airlines, some low-cost airlines heavily rely on customers forking over baggage fees” reports fastcompany.com. For instance, Southwest doesn’t charge baggage fees for the first two checked bags, and its baggage fee revenue made up less than 1% of its overall operating revenue.One thing helping them rake it in is the fact that those three airlines have the highest average baggage fees: $26.61 (Spirit), $21.17 (Frontier), and $19.78 (Allegiant).While low-cost airlines may charge customers for bags, they also typically charge less for tickets.Turns out that some airlines are incredibly dependent on that first type of traveler, so dependent that they are banking on them keeping their airlines afloat.
 
Source: fastcompany.com



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