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Airline Fees Add Up To Difficulty Finding True Cost Of Trip

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By TED JACKOVICS

The Tampa Tribune

Published: April 26, 2008

TAMPA - Don't be surprised if it costs more today to your check your luggage on a flight than to pay the airfare.

Spirit Airlines charges $20 to check a bag at the airport, compared with its recent $13 Tampa-Detroit ticket promotion. But the same goes for nonbargain flights on many airlines, especially if a passenger checks two or three suitcases, requests an aisle seat, and orders a snack and drink en route.

Those services used to be free. Now they are subject to a la carte fees airlines impose to cope with soaring fuel costs. Curbside baggage service, checked baggage and overweight baggage will cost you. So will choice seat assignments, snacks and making reservations by telephone.

Those nickel-and-dime fees add up, translating into a lucrative flow of hundreds of millions of dollars in cash for airline companies struggling to remain profitable. What's good for the airlines, however, may confuse passengers shopping for the best prices in a down economy.

Industry observers say it has become difficult for passengers to know how much their flight really will cost because airlines have established so many a la carte fees, and information about the charges has been scattered on their Web sites.

"You go back to financial problems airlines had before 9/11 and passengers said airfares were too complex," said Dawna Rhoades, a management professor and associate dean of research at Embry-Riddle Aeronautical University's Daytona Beach campus.

"So airlines simplified pricing. But now complexity is creeping back in, and most passengers won't be entirely sure what the charges are."

Another round of new fees will take effect in early May, when United Air Lines, Delta Air Lines and US Airways charge more to check bags. United has said it will make about $100 million annually with the additional fees, while US Airways has said it will net $75 million a year.

Frontier Airlines, which filed for Chapter 11 bankruptcy protection this month, will begin charging $3 for food Thursday.

Choosing a seat also can cost more. US Airways passengers on May 7 can pay $5 to $15 for reservations of aisle or window seats in the first few rows of coach class, depending upon the duration of the domestic flights. Preferred coach seats for US Airways' European flights will cost an additional $30.

"We are trying to communicate and give everybody plenty of information," US Airways spokeswoman Valerie Wunder said. "Hopefully, people will not be surprised."

One frequent Tampa airline passenger who has no use for a la carte pricing is Bill Krusen, who speaks from a nearly unparalleled vantage point about commercial aviation. Krusen, 87, began his career as a commercial pilot for Braniff Airways in 1941. He flew for Pan American Grace before retiring and later headed the Hillsborough County Aviation Commission when it planned the airport terminal that opened in 1971.

"I would sooner bite the bullet and have the airfare go up by $10 or $20 to accommodate fuel increases, just like you do when you drive your car up to the gas pump," Krusen said. "And, sooner or later, people paying the so-called a la carte charges are going to create a lot of extra paper work for airlines."

Airlines have developed fee exceptions for first class and favored frequent flyers. Krusen recently flew from New York to Tampa on Continental Airlines with no extra charges. Continental still provides free meals. He and his wife are planning a trip to Europe in first class on a Delta flight, which means he will avoid a la carte prices again.

Most airlines try to raise airfares incrementally as fuel costs rise, even labeling some increases as "fuel surcharges." But competition frequently forces airlines to cancel fare increases within days of announcing them.

Delta, for example, raised airfares by $10 in late March, one week after rescinding a previous fuel surcharge when other airlines failed to raise their prices. The most recent increase was Thursday, when United announced a 3 percent to 5 percent airfare increase after losing $537 million the first three months of the year because of increased fuel costs.

Major airlines appear likely to continue to use a la carte pricing to try to contend with oil prices that have risen to their highest points in history - about $120 a barrel this week. Some observers warn there is a limit to increasing airfares, especially with the impact on families planning leisure trips, so airlines promote a la carte fares as a way to contain costs.

"We remain profitable for the fifth consecutive year, much of that attributable to our a la carte pricing," said Tyri Squyres, director of corporate communications for Allegiant Air, which flies to 15 destinations from St. Petersburg-Clearwater International Airport.

Spirit led the way last June for domestic carriers to charge checked baggage fees. The move left some of its officials worried at first, but it was successful enough that in February, the airline was able to raise its fees for checked baggage from $5 to $10 for Internet advance bookings and from $10 to $20 for bags checked at the airport.

"Spirit's nonticket revenue is expected to exceed 20 percent this year," said Misty Pinson, the Miramar-based airline's head of North America corporate communications. "Spirit's a la carte, or unbundled approach, to air travel has received a tremendous response from our passengers, who only have to pay for the services they desire or need."

Pinson said Spirit's plan is similar to an evening at a movie theater: You pay one price for admission, but you pay extra if you want popcorn or a soda.

"If you don't want popcorn, then why should you pay a higher movie price?" she said. "A la carte allows airline passengers to pay only for the services they desire or need. It's the core of our business model, and it's what makes Spirit successful."

Reporter Ted Jackovics can be reached at tjackovics@tampatrib.com or (813) 259-7817.

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