Hawaiian Airlines has stood firm to its policy of charging for both checked bags and reservation changes even in the wake of Southwest Airlines’ aggressive growth into the state that began earlier this year.
That steadfast decision generated the state’s largest air carrier $42.7 million in baggage fees during the first half of this year and an additional $11.1 million in reservation cancellation and change fees, according to new data released by the U.S. Department of Transportation.
Airlines have been assessing fees for checked bags since American Airlines became the first major carrier to do so when it charged passengers $15 for a first checked bag in May 2008 to help offset soaring fuel costs.
Since then, it’s been no turning back for most airlines, with Southwest a holdout as it counts on its customer-friendly policies of “Bags Fly Free and No Change Fees” to attract
passengers.
Hawaiian, which has seen its stock lose more than one-third of its value over the past year, made a competitive move on Monday when it began selling new no-frills mainland fares, which are roughly $60 cheaper per round trip. Those fares will be effective starting Oct. 21 on flights between Honolulu and Los Angeles, Long Beach, Calif., and San Jose, Calif. Passengers booking these fares will forgo advanced seat
selection and the ability to upgrade, but still will get a free carry-on.
Hawaiian has continually defended its decision to charge for checked bags and reservation changes.
“We provide unmatched value to Hawaii residents and visitors who enjoy our Hawaiian hospitality, including complimentary meals, superior product and leading punctuality,” Hawaiian spokesman Alex Da Silva said earlier this year.
While Southwest doesn’t charge for the first two checked bags, it did receive $25.8 million from checked bags through the first half of this year because it does charge passengers for luggage starting with the third checked bag and for overweight and oversized bags.
Hawaiian charges $30 for a first checked bag and $40 for a second checked bag on mainland flights. Those numbers are in line with most airlines. Hawaiian’s interisland checked-bag fees are $25 and $35, respectively, or $15 and $20 for
HawaiianMiles members.
Overall, the 11 reporting U.S. airlines took in $2.81 billion in baggage fees through the first six months of this year, up 18.9% from $2.36 billion in the year-earlier period. Airlines’ reservation and change fees rose 3.4% to $1.4 billion from $1.36 billion in the year-earlier period.
American Airlines collected the most in baggage fees, with $667.9 million, and the most in reservation and change fees, with $415.4 million.