While stores have always been able to offer cash-paying customers a discount, the recent settlement with Visa, Mastercard and bank credit-card issuers now allows stores to add a charge (equal to the swipe fee) for credit-card payments. Since stores can now disclose the fee, they suddenly have more leverage to negotiate lower swipe fees. Bet that airlines will add the fee, as their customers all pay with plastic.
Tag Archives: Airline fees
Airline Bag Fees
US airlines collected $3.4 billion in bag fees in ’10, up 24% from ’09 according to a DOT report. Absent fees, airlines would probably be losing money. Las Vegas based Allegiant generated 29.2% of all their revenue from extra fees, more than any airline in the world. Among US carriers Delta generated the most revenue from bag fees; $952 million. United/Continental was next at $655 million, American $580 and US Airways $513.