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Airlines expected to collect $22.6 billion in fees in 2010

October 15, 2010 | 11:57 am

Passengers at LAXAll of those extra fees airline passengers pay to check bags, fly standby and order food, among other costs, will generate an estimated $22.6 billion in 2010 for the world's air carriers.

That is the forecast included in a study released Friday by IdeaWorks Co., a Wisconsin-based consulting firm for the travel industry.

Major U.S. carriers will generate $6.7 billion of that total in 2010, the study estimated. 

IdeaWorks did not perform a similar estimate for all airlines for 2009. However, the company previously reported that 97 airlines around the globe collecting $13.5 billion in fees in 2009 and $10.25 billion in 2008.

IdeaWorks calculated the projected revenue from such charges -- known as ancillary fees -- by studying the revenue reports released earlier this year by 46 airlines.

The revenue from such fees now represents less than 5% of the operating revenue for the airlines, according to the IdeaWorks study.

Still, the revenue from airline fees can jump significantly in the next year if every airline decides to maximize the range of services and products offered passengers, said Philippe Chereque, executive vice president for Amadeus, a Madrid-based technology company that specializes in helping airlines collect fees.

-- Hugo Martin

Photo: Passengers push luggage through Los Angeles International Airport. Credit: Los Angeles Times

 

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