Hawaiian Airlines has given no indication of changing its baggage and change-fee policies even with Southwest Airlines lurking in the distance.
The state’s largest carrier, which depends on those charges to help bolster its revenue, exceeded $100 million in baggage and reservation cancellation/change fees for the third straight year, according to data released Monday by the U.S. Department of Transportation.
Hawaiian generated $81.2 million in baggage fees and $22.8 million in cancellation/change fees for a combined $103.98 million in 2017. That was virtually flat with the $104 million it received in 2016 and up from $101.4 million in 2015. Change fees increased 5.5 percent from $21.6 million in 2016.
Representatives for the airline could not be reached for comment Monday.
But in September Hawaiian spokeswoman Ann Botticelli said that “we have no plans to alter our product. We are very proud of our superior service and hospitality, which includes complimentary meals in the main cabin.”
In a year when Hawaiian transported a record 11.5 million passengers, the airline’s baggage fees actually declined 1.5 percent in 2017 from $82.4 million in 2016. That could be partly attributable to the fact that Hawaiian has programs for HawaiianMiles frequent-flyer members and Hawaiian Airlines MasterCard holders that allow them to receive one or more free checked bags.
Southwest, which is known for its “Bags fly free” slogan, does not charge for the first two checked bags and doesn’t charge fees for reservation changes or cancellations. Southwest does charge fees for excess bags and oversize or overweight luggage, however.
The Dallas-based carrier, which generated $46.1 million in baggage fees in 2017, said last week it expects to begin selling mainland-Hawaii tickets later this year for service from the California cities of San Diego, Sacramento, San Jose and Oakland and that it subsequently plans to offer interisland service.
Southwest President Tom Nealon said the airline will keep in place its no-fee policy for Hawaii routes regarding checked bags, flight cancellations and reservation changes.
New York-based airline industry analyst Bob Mann suggested, however, that Southwest ultimately might blink first and charge fees for Hawaii service rather than Hawaiian dropping its fees.
“Not at this time (for Hawaiian),” Mann said. “Hawaiian Airlines’ Hawaii network is far more substantial than any other carrier’s and is likely to remain so. Over time it may be Southwest Airlines that flips and imposes fees.”
Hawaiian, which generated $2.7 billion in overall revenue in 2017, is not alone in its dependence on such fees as a significant part of its income stream. The 13 reporting U.S. airlines raked in $4.58 billion in baggage fees last year and an additional $2.86 billion in cancellation/change fees to bring the combined total to $7.4 billion.
Island Air, the state’s second-largest airline, which shut down Nov. 10, took in $5 million in baggage fees and $460,000 in change fees during the year before shutting down.
American Airlines became the first major carrier to charge for a first checked bag when it assessed passengers $15 in May 2008 to help offset soaring fuel costs. Since then there has been no turning back. American led all U.S.-based carriers in 2017 with $1.17 billion in baggage fees and $878.3 million in change fees.
Delta Air Lines was second with $907.6 million in baggage fees and $830.6 million in change fees. United Airlines was third with $794.5 million in baggage fees and $709.3 million in change fees.
Hawaiian is in line with most airlines domestically in charging $25 for a first checked bag and $35 for a second. On interisland flights HawaiianMiles members pay $15 and $20, respectively, for first and second checked bags.
