Airlines collect nearly $8 billion in extra fees

Airlines collected a record $7.8 billion in service fees last year, bolstered by checked-bag fees, possibly giving lawmakers more motivation to cap or prohibit certain fees. 

Collection of fees for a variety of services was up 42 percent from $5.5 billion in 2008, when airlines introduced additional costs for passengers to check their bags as oil prices soared to $147 a barrel, according to a Transportation Department report released Monday. 

The airlines collected $2.7 billion in baggage fees for 34 percent of the total, followed closely by $2.4 billion for reservation changes and $2.7 billion from other fees such as frequent flyer award program mileage sales and pet transportation. 

Sen. Chuck Schumer (D-N.Y.) is waging the latest battle over fees -- protesting a fee proposed by Spirit Airlines for carry-on bags that can only fit into the overhead bins. Schumer has asked the Treasury Department to write a rule prohibiting the fee and he has introduced legislation that would do the same. 

Spirit, which sells itself as a low-cost airline, received 21 percent its revenue from fees, leading all carriers. Fees represented a 6.5 percent average of the total revenue of 32 carriers reporting fee collection. 

Revenue from seating assignments, on-board sales of food, drink, pillows, blankets, entertainment and other items are reported in a different category. 

Delta, the nation's largest carrier collected $1.65 billion in 2009, including $425.7 million in the fourth quarter, the most of any carrier and a nearly 50 percent increase over the same quarter of 2008. 

American Airlines ranked second with just over $1 billion, US Airways was third, with $912 million, Northwest was fourth at $719 million and Southwest, which only charges for the third checked bag, was sixth, collecting $617 million. 

United and Continental, which announced a $3 billion merger Monday, were fifth and seventh overall, collecting $619.5 million and $538 million.