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Spirit Airlines earned more of its revenue from fees than any airline
BY JACLYN GLOVIS
Sun-Sentinel

No airline earned more of its revenue from fees last year than Miramar-based Spirit Airlines, according to data released Monday by the U.S. Department of Transportation.

Spirit, which has been a leader in creating new fees for fliers, got more than 20 percent of its 2009 revenue from ancillary fees for services such as checked baggage and ticket changes. That amounted to $146 million. The runner-up, AirTran Airways, earned about 11 percent, or $249.7 million, of its revenue from fees.

``Allowing customers to pay for only what they want rather than forcing them to pay for unwanted services is desirable for consumers,'' said Spirit spokeswoman Misty Pinson.

Fees, particularly for checked and overweight baggage, are becoming an increasingly important source of revenue for airlines. In 2007, baggage fees made up less than 1 percent of operating revenue for the airlines. That started to change in 2008, when the airlines began charging to check the first bag and raising fees on overweight items. Last year, many carriers raised their bag fees even higher.

Carriers collected $7.8 billion in ancillary fee revenue in 2009, compared with $5.5 billion in 2008. About $2.7 billion came from baggage fees, $2.4 billion from reservation change fees and $2.7 billion from other ancillary fees, such as pet transportation fees and frequent flier award program mileage sales. Delta collected $1.6 billion in annual ancillary fees, the most of any carrier.

In the 2009 fourth quarter, Spirit was the most profitable of the 21 network, low-cost and regional carriers analyzed by the department's Bureau of Transportation Statistics. Spirit's fourth-quarter profit margin was 12.4 percent, or $22 million in operating profits.

Allegiant Air was the second most profitable airline with a margin of 11.7 percent, or $15 million in operating profits, during the fourth quarter.

Spirit said it remains committed to the a la carte pricing model and expects to continue to grow ancillary fee revenue.

``Our goal is to make the base fare as close to zero as possible, giving more people access to travel rather than making it only a luxury for the wealthy,'' Pinson said.

Read more: http://www.miamiherald.com/2010/05/04/1 ... z0myJokHVg

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Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

GOOD INTEL, FLYING THEM TOMORROW TIME WILL TELL THANKS ID

I'm sure this will become the business model for the majority of the other carriers as well. I travel light so not really a big deal for me.

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Go Dolphins!!!

Brother DRD--You might as well pack heavier if they go through with that plan to charge more for carry-on than for checked baggage.

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"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

Exactly!

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"In a nation ruled by swine, all pigs are upwardly mobile, and the rest of us are phucked until we can put our acts together; not necessarily to win, but mainly to keep from losing completely"...Hunter S. Thompson (RIP)

Have only seen real enforcement once. That was last August in Miami. On a flight to SJO the AA agent at the gate had passengers putting their hand baggage in that template that measures if the carry on fits the size restrictions. If the bag did not fit they had to check it. They caught a lot of oversize carry on bags. Wish they would do that on every flight.

If Spirt starts that will they refund the difference between the carry on bag fee and the check bag fee

_________________
Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

They could add an exciting twist to it all. Create baggage police. Wander around, and bust people who appear to have oversized bags and give you a fine; which would then go into some random corrupted fund

Brother Jazz, I've got that covered for CR at least. I have three good friends who live there and anyone of them would let me leave a typical assortment of my things down there ie. clean underwear

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Go Dolphins!!!

With apologies to Lieber/Stoller--"There's a Riot Going On" in Terminal X

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"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

I'm waiting to see the enterprising Tico/a that sells all the stuff one carryson for Costa Rica....condoms, booze, ancilliaries for sex play, clothing, etc.