Hawaiian Airlines collected more money from baggage fees last quarter than in any quarter before.
The state’s largest carrier took in $22.3 million during the July-September period and is on track to exceed the $81.2 million it received for all of 2015, according to data released Monday by the U.S. Department of Transportation. Hawaiian’s baggage fees last quarter were up
2 percent from $22 million in the year-earlier period after the carrier offered more flights to the mainland and neighbor islands. Hawaiian collected $63.1 million in baggage fees, which included fees for oversize and overweight bags, through the first nine months of 2016.
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. Checked bag fees are now part of an airline’s revenue stream as carriers unbundle their services in searching for additional revenue.
“Unbundling allows customers to choose which services they value and want to purchase,” Hawaiian spokesman Alex Da Silva said in an emailed statement. “Increasingly our guests are customizing their travel experience with Hawaiian with products like Extra Comfort or Vacation Packages, and we expect these trends to continue.”
Island Air, which announced last month it was increasing its checked-bag fees $10 for customers not enrolled in the airline’s frequent-flier program, generated $1.1 million in baggage fees last quarter, nearly double the $572,000 it received in the third quarter of 2015.
Both Hawaiian and Island Air also saw increases in revenue from reservation cancellation and change fees. Revenue from Hawaiian’s change fees rose 8 percent to $5.7 million from $5.3 million, while income from Island Air’s change fees more than doubled to $148,000 from $67,000.
Hawaiian is in line with most airlines 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.
Island Air increased its baggage fees Nov. 15 and now charges $25 for a first checked bag and $35 for a second. That’s up from $15 and $25, respectively.
However, Island Miles members pay $15 for the first checked bag and $20 for the second.
Overall, the 13 reporting U.S. airlines made $1.10 billion from baggage fees in the third quarter, up 8 percent from $1.02 billion in the year-earlier period.