Airlines had a record year for baggage fee collections in 2015, with more than $3.8 billion generated according to the Department of Transportation’s Bureau of Transportation Statistics. This has caused the American Association of Airport Executives to call on airlines to end their “misguided opposition” to increasing the Passenger Facility Charge cap.
“Another report of record bag fee collections from the airlines and another collective yawn from Washington,” AAAE President and CEO Todd Hauptli says. “For far too long, policy makers have ignored the staggering disconnect from the airline industry, which is all-too-happy to collect billions in airline-imposed fees destined for their bottom line but fights with all of its political might to oppose local fees that pay to build airport infrastructure and serve the traveling public. Congress needs to see past the self-serving rhetoric from the airlines and act to give airports the tools they require to meet growing needs through an updated Passenger Facility Charge program.”
In addition to the $3.8 billion from baggage fees, airlines also collected $3 billion in reservation change or cancellation fees.
The PFC generated around $3 billion for airports to use on local, FAA-approved airport facilities projects in 2015. The current $4.50 cap on the PFC hasn’t been adjusted since 2000.