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Tuesday, September 21, 2010

U.S. Airlines Collect $2.1 Billion In Fees In 3 Months

Charges help companies turn their first profitable quarter since 2007

NEW YORK — U.S. airlines collected $2.1 billion in fees and extra charges from passengers in the second quarter, up 13 percent from the first three months of the year, the government said Monday.

The fees and extra charges helped major U.S. airlines post their first profitable quarter since 2007.

Most of the fees came from checked bags, which rose 16 percent to $893 million.
Reservation fees totaled $594 million, up from $553.9 million in the first quarter of this year.

Airlines reported $618 million in so-called ancillary revenue, which includes revenue from frequent-flier award program mileage sales and pet fees. Other fees, such as revenue from seating assignments and on-board sales of food, drink, pillows, blankets, and entertainment are not broken out by the government.

Overall, Delta, the world's largest airline, made the most money in total extras at $682 million. American is next in line, followed by US Airways.

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