Friday, February 10, 2012

Airline fees test travelers’ limits

Airline fees test travelers’ limits

After a United flight hit severe turbulence over Kansas on July 20, injuring dozens of people on board, Jay Leno joked that flight attendants administered first aid only to passengers who paid a $7.50 “triage fee.” It was a bit of morbid humor reflecting the view that airline fees are out of control.

Even the government is concerned about the fee frenzy, which generated nearly $8 billion for American carriers last year. The House Subcommittee on Aviation recently held a hearing to investigate whether airline fees should be more clearly disclosed to passengers, and the Department of Transportation is considering rules that would force carriers to do just that, in advertisements and during the ticketing process. But so far, the government has stayed away from the underlying issue that irritates many travelers: whether these fees are fundamentally fair.

While baggage fees have gotten the most attention, at least there are ways to avoid them (pack light, or fly Southwest or JetBlue, which allow one or more checked bags without charging). Spirit Airlines began charging for carry-on bags on Aug. 1, a controversial move, but unless that catches on, the fees below get my vote for most outrageous — because they are grossly out of proportion to the service rendered, are inadequately disclosed, or punish customers for the airlines’ operational flaws.

Ticket change fees
From January to March, United States airlines collected $769 million in baggage fees, but they also made an eye-popping $554 million from reservation change fees, which have risen as high as $150 for a domestic ticket on American, Continental, Delta, United and US Airways. Those airlines all charge up to $250 to change an international flight, and if you book your ticket through Orbitz or Travelocity, you have to pay the agency an additional $30 change fee (Expedia does not charge extra).

And these are just service fees; you also have to pay any difference between your original fare and the new ticket price. The galling thing is that the airlines reserve the right to cancel or change flights themselves, without penalty. And the increase is out of proportion to what it costs an airline to rebook, now that everything is handled electronically: five years ago, fees were $20 to $100 for a domestic flight.

At least some airlines are not gouging their customers. Southwest does not charge passengers a fee to change a ticket and never will, said Brad Hawkins, a Southwest spokesman (though it does charge any fare difference). Airtran charges $75 for ticket changes, as do Alaska and Virgin America if you change your ticket online; by phone, it’s $100.

In June, American introduced a “boarding and flexibility” package that gives you a $75 discount on flight changes, as well as early boarding and free standby, for $9 to $19, depending on the flight. Yes, you can now pay a fee to possibly reduce your fees, and that is not a late-night monologue joke.