The jingling you hear these days isn’t just for the holidays.
It’s also coming from the baggage and ticket-change fees that are bringing millions of dollars to Hawaiian Airlines and the nation’s other carriers.
Hawaiian’s checked-bag fees hit a company-record $19.1 million in the third quarter and accounted for nearly half of the $40.6 million in net income that the state’s largest carrier made during the period. Hawaiian’s baggage fees topped the previous record of $18.1 million in the third quarter of 2012 and represented a charge of $7.22 per passenger.
The airline also took in $4.6 million in reservation cancellation and change fees — down from $4.8 million a year ago — to bring its total bag and change fees to $23.7 million, according to data released this week by the U.S. Department of Transportation. Hawaiian ranked 10th among the 14 reporting airlines in both categories.
In addition, Hawaiian collects fees for such amenities as in-flight entertainment, snacks, premium meals and preferred seating, but those ancillary items are not required to be reported to the DOT.
Hawaiian Air spokeswoman Ann Botticelli said offering unbundled products and services with a la carte pricing is common in many industries.
"Customers make their choice based on a baseline price, and add other options as they choose," she said. "There are customers who prefer a system that allows them to select which services they want to purchase, and prefer not to pay a higher ticket price that includes amenities that they don’t value."
Island Air is also required to report its baggage and change fees because its planes seat more than 60 passengers, but missed its reporting deadline and is working with the DOT, the agency said.
Overall, the nation’s 14 reporting carriers last quarter collected $878.9 million in baggage fees, down 4.9 percent from $924.2 million in the year-earlier period when two more airlines reported. Reservation cancellation and change fees rose 12.7 percent last quarter to $734.8 million from $652 million a year ago.
Those fees helped U.S. airlines post net income of $3.2 billion in the third quarter compared with $1.4 billion in the year-earlier period.
Delta Air Lines led the way in both categories with $192 million in baggage fees, or $5.08 per passenger, and $198.6 million in change fees.
Hawaiian charges $17 each for its first and second checked bags on interisland flights and $25 and $35, respectively, for checked bags on North America flights. There is no charge for the first two checked bags on international flights.
Island Air, which flies only between the Hawaiian Islands, charges $17 for each of the first two checked bags.
Airlines have relied heavily on baggage fees and other fees to help offset their expenses since fuel prices began to spike. They began charging for checked bags in 2008.
Colorado-based airline consultant Mike Boyd said he doesn’t blame the airlines for charging baggage fees.
"When you buy a ticket, that’s for your transportation," he said. "Airlines are making a point when they say if you check a bag, they have to handle it and if you don’t check a bag, they won’t charge you. But when they added baggage fees, they did not lower base fares. They increased the cost of transportation. I’m sure customers would rather not pay it, but it’s the name of the game today."
Boyd doesn’t feel as endearing toward change fees, however.
"Change fees have been around for a long time and I think change fees are on the ragged edge of almost gouging," he said. "It doesn’t cost an airline to change your reservation. They call it a service fee, but there’s no service involved."