Airlines are increasing baggage and reservation change fees, according to a report by Travel Pulse. In response, the American Association of Airport Executives (AAAE) has intensified pressure on carriers to stop opposing an increase in the Passenger Facility Charge (PFC).
“The PFC cap has been $4.50 since 2000. AAAE and several other organizations are requesting a modest increase to passenger airline tickets — from $4.50 to $8.50, with future adjustments tied to inflation. Airlines oppose an increase in the PFC,” Travel Pulse notes.
AAAE points out that U.S. carriers have been earning substantial revenue from baggage and change fees—reporting a record $1.1 billion in baggage fees and $755 million from reservation change fees in the second quarter of 2016—so resistance to modest PFC increases seems misplaced. Those PFC funds would be used by airports to finance facility improvements.
“The autumn leaves may be starting to fall, but the astounding bag fee collections from the airline industry continue to defy gravity,” said Todd Hauptli, president and CEO of AAAE. “What defies not only gravity, but also logic, is their increasing reliance on bag fees and ancillary revenues—revenues that appear designed to support rising airline profits—while they vigorously oppose a modest increase in the airport Passenger Facility Charge program.”
Hauptli added that AAAE will press Congress on the issue. “AAAE renews its call on Congress to look beyond self‑serving airline rhetoric and act in the public interest by modernizing the PFC as soon as possible,” he said.
Federal data show that since 2008 airlines have collected more than $26.8 billion from baggage fees and over $21.5 billion from ticket change and cancellation fees, according to the U.S. Department of Transportation. By comparison, airports collectively received roughly $3 billion from the PFC during that period. The PFC is an optional local charge that must be justified, imposed, and used locally on FAA‑approved projects that enhance airport facilities, Travel Pulse reports.