After taking significant losses in 2020 and 2021, US airlines finally earned a $1.6 billion profit in 2022 according to stats from the US Department of Transporation — a sign the strong travel rebound is not slowing down.
However, the mere $1.6 billion is a far cry from the nearly $15 billion the industry earned in 2019 before the pandemic halted international travel and forced carriers to make drastic changes.
But surging post-COVID demand coupled with inflation and rising oil prices has airlines desperate to beef up their operations — and their revenue streams.
One strategy has been to raise baggage fees. Major US carriers, including American Airlines, Delta Air Lines, and United Airlines, have been unbundling their fares for years as a way to better compete with low-cost competitors.
Adding a carry-on or checked bag commonly costs $25 one-way pre-COVID — but that has risen as high as $35 in 2022.
The strategy has paid off, with airlines collectively earning about $6.8 billion in baggage revenue last year according to DOT stats. This compares to $5.3 billion and $5.8 billion in 2021 and 2019, respectively.
This year's $1 billion increase from 2019 is despite carrying 72 million fewer passengers. However, carriers faltered when it came to handling the luggage, resulting in nearly 3 million bags lost, destroyed, or delayed across all airlines in 2022.
The DOT records the annual rate of mishandled baggage across 10 mainline and low-cost US airlines — take a look at how these numbers compare to luggage revenue in 2022.