Hawaiian Airlines collects $26.7M in baggage, change fees

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Hawaiian Airlines collected $20.6 million in baggage fees during the first quarter as it transported a record number of passengers.

The state’s largest carrier, which carried 2.9 million passengers during the quarter, also took in $6.1 million in reservation cancellation and change fees.

Hawaiian, like other airlines, depends on baggage fees and other ancillary income to help bolster revenue. Last year Hawaiian exceeded $100 million in baggage and reservation cancellation/change fees for the third straight year. During 2017 it generated $81.2 million in baggage fees and $22.8 million in cancellation/change fees for a combined $103.98 million.

Hawaiian’s baggage fees in the January-March period were up 8 percent from $19.1 million in the year- earlier quarter, according to data released Tuesday by the U.S. Department of Transportation.

Southwest Airlines, which is expected to begin service between the mainland and Hawaii from four California cities (San Diego, Sacramento, Oakland and San Jose) later this year or early next year, took in $11.4 million in baggage fees in the first quarter even though the airline has a “bags fly free” policy. Southwest does charge for overweight or oversize bags as well as passengers who check three or more pieces of luggage.

Hawaiian and Southwest ranked ninth and 10th, respectively, among the 11 domestic carriers reporting to the DOT. American Airlines collected the most in baggage fees with $289.3 million and the most in reservation and change fees with $226 million. American 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.

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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.

Overall, the 11 reporting airlines took in $1.12 billion in baggage fees during the first quarter, up 9 percent from $1.03 billion in the year-earlier period. The 10 airlines reporting reservation and change fees (Southwest does not charge fees to cancel or change flights) fell 8.5 percent to $662 million from $723.6 million.