DAL, CAL to Charge Highest Fee in the Industry
Delta Air Lines (DAL) and Continental Airlines (CAL) will start imposing customers with the highest fees in the industry this week for checked bags, enticing other legacy carriers to follow suit.
The new fees apply to flights within and between the U. S., the U. S. Virgin Islands, Canada, and Puerto Rico except for premium-class fliers, frequent fliers and active U. S. military members.
The recent jump in the crude prices touching a 15 month high benchmark has resulted in soaring pressure on the airline industry.
Representatives for UAL Corp's United Airlines and U. S. Airways revealed that the carriers were analysing the changes.
Amidst growing pressure, Continental now charges customers $25 for the first bag and $35 for a second piece of luggage for flights to and from the United States, Canada and the Virgin Islands. The carrier raised its fees on January 8.
The domestic airlines raked in more than $700 million from checked-bag fees during the third quarter, up 111% from last year, reported the U. S. Bureau of Transportation Statistics.
In addition, the global airline industry claims a combined $5.6 billion loss in 2010, an improvement from the estimated $11 billion loss last year, according to data provided by the International Air Transport Association.