Quelle surprise !!!: Airline Fees Account for Most Airline Profits

[marmar]

ATLANTA (TheStreet) -- U.S. airlines collected about $4.3 billion in fee revenue in the first three quarters of 2010, an amount roughly equivalent to the industry's anticipated total profits for the year.

With the fourth quarter historically one in which airlines loses money, it is possible to include that nearly every penny of the industry's profits will result from fee income. U.S. airlines are expected to earn about $4 billion in 2010 after losing $23.7 billion the previous year.

Speaking at an investor conference last month, US Airways(LCC_) CFO Derek Kerr said the airline would have about $500 million in 2010 fee revenue, including $475 million from baggage fees. That is roughly equivalent to US Airways' expected 2010 profit.

The Bureau of Transportation Statistics on Monday reported fee revenue for the first three quarters. Among the individual carriers, Delta(DAL_), the largest airline, had the highest fee revenue, about $1.3 billion. American(AMR_) had about $785 million. Combined, United(UAL_) and Continental had about $922 million. .........(more)

The complete piece is at: http://www.thestreet.com/story/10945724/1/airline-fees-account-for-most-airline-profits.html?cm_ven=GOOGLEN

[nc4bo]

1. Imagine that? Weren't the banks doing the same thing, calling service fees, etc., profits?

And such handsome profits they were when multiplied across the millions of consumers forced to pay them.

Such a sham. We just can't keep going on like this.

[marmar]

2. Without usury and trickery, the economy would collapse.

nt

[abelenkpe]

3. +1 sad isn't it? nt

[blondeatlast]

4. And yet Southwest, which never took a dime from the taxpayers after 9/11, still

is profitable and still has free baggage.

What the hell is Southwest doing wrong? :sarcasm: