New Charges on Airlines

Posted by Admin | April 6th, 2010

Spirit Airlines is looking for extra ways to raise revenue during the recession–and they think they’ve found the way. While many airlines already charge you for your shipped baggage, Spirit Airlines is going to be the first to charge for carry-ons.

Spirit Airlines announced it will charge as much as $45 each way for a carry-on bag, a new fee the bigger airlines have yet to try.

The charge will apply to bags in the overhead bin. Personal items that fit under the seat, such as purses, briefcases, backpacks or laptops, will still be free.

Spirit said it will add measuring devices at the gates to determine which carry-ons are free and which ones will incur the charge.

The new charge is $45 if paid at the gate, and $30 if paid in advance, and begins Aug. 1. Customers who pay to join Spirit’s new “$9 Fare Club” will pay $20.

My guess is that this move won’t result in higher revenue–but in less customers. I guess we’ll see, it certainly is innovative, but they probably should have tried to slash spending instead of raising fees.