Checked Bag Fees Made US Airlines Over $7.2 Billion In 2024. What Used To Be Included Is Now A Multi Billion-Dollar Industry

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In 2024, U.S. airlines raked in a record-breaking $7.27 billion from checked bag fees, turning what used to be a standard part of flying into a massive source of revenue.

This figure, released by the Bureau of Transportation Statistics, marks the highest ever recorded, up from $7.07 billion in 2023 and $6.7 billion in 2022.

How We Got Here

Most travelers still remember when meals, seat selection, and baggage were all included in the price of a plane ticket.

That started to change in the mid-2000s, as budget airlines began unbundling services to keep fares low. Eventually, even major airlines followed suit.

“It feels like a trick,” 24-year-old Lauren Alexander told the BBC after paying $200 extra to bring a suitcase on her flight from Boston to Toronto.

“You buy the ticket, you think it’s going to be less expensive, then you have to pay $200 (£148) extra [to bring a suitcase].”

Airlines Double Down on Fees

Today, every major U.S. airline charges for checked bags on domestic routes. Even Southwest Airlines, long known for offering two free checked bags, recently announced it will start charging $35 for the first one.

The move came after pressure from activist investors. Southwest predicts the change will result in $1.5 billion in additional revenue annually.

JetBlue introduced Uber-style surge pricing in 2023, making it more expensive to check bags during busy travel periods.

American Airlines raised its first checked bag fee from $30 to $35 in 2024. Delta and United also charge similar amounts.

According to federal data, American, Delta, and United each made more than $1 billion from baggage fees in 2024 alone.

Airlines say these charges help cover rising costs like fuel and wages, but travelers and consumer advocates are pushing back.

The Carry-On Workaround

Some passengers now go out of their way to avoid paying.

“It can be pricey,” 27-year-old Sage Riley said, choosing to travel with just a backpack.

The result has been a surge in demand for carry-on-sized luggage.

“We’ve seen huge spikes in searches online and on our website,” said Kirsty Glenn, managing director of U.K. luggage brand Antler.

On social media, packing hacks and suitcase reviews have become wildly popular.

Travel journalist Chelsea Dickenson said videos testing whether a bag fits airline size limits often get more views than trip planning content.

“It’s become a core part of the content that I create,” she said.

Carry-On Rules Vary Widely

A comparison of U.S. airlines shows big differences in carry-on rules, too. American, Delta, United, JetBlue, and Alaska allow one carry-on and one personal item for free.

But ultra-low-cost carriers like Frontier and Spirit charge for carry-ons, depending on fare tier, departure date, and booking method. Fees can climb as high as $99.

Even when carry-ons are included, size limits vary. Southwest is the most generous, allowing up to 50 linear inches, compared to the standard 45 inches used by most others.

Spirit and Frontier match Southwest on size, but charge extra for basic economy.

Pushback and What’s Next

As airlines continue finding ways to squeeze more revenue out of passengers, some lawmakers and consumer groups are calling for change.

A 2014 EU court ruling stated that hand luggage meeting basic requirements shouldn’t come with extra charges, but no clear U.S. rule exists.

For now, the bag fee industry shows no signs of slowing down.

The International Air Transport Association estimates global airline ancillary fees, including baggage, seat selection, Wi-Fi, and food, will hit $145 billion in 2025, making up 14% of airline revenues.

What used to be included in the cost of a ticket is now a multi-billion-dollar business, and travelers are paying the price.