The authoritative record of NPR’s programming is the audio record.Orbitz flights Some airlines will let you choose seat for free. This text may not be in its final form and may be updated or revised in the future. NPR transcripts are created on a rush deadline by an NPR contractor. Visit our website terms of use and permissions pages at for further information. SIEGEL: That's Rick Seaney, CEO of .Ĭopyright © 2015 NPR. SIEGEL: Well, thanks for discussing the inevitable bad news with us about baggage fees. I hope it takes a couple more years before they decide to do it. And I do believe that you haven't seen their commercials lately touting, you know, no bag fees or bags fly free. It's really probably worth a billion dollars or so to Southwest Airlines or a little bit less, as much traffic as they have. Coyote hanging off a limb because they're the last one that's sitting out there that hasn't charged a bag fee. SEANEY: Yeah, every time I talk about Southwest, I picture Wile E. SIEGEL: If adding baggage fees made sense to JetBlue, how far away is Southwest from the same decision?
Just like trying to find the best airfare, getting rid of the bag fee is also something that's quite popular. Branded credit cards will wave those fees if you have a certain branded credit card. And there are so many ways to get around the bag fee - elite status. So - so that's one of the things, sort of the economics there. Clearly, every time - anytime I've seen it, a Senator gets charged a bag fee, we have new legislation to either get - purposed legislation to either get rid of bag fees or to tax them. So if they actually charge you the bag fee as part of your fare, it would be taxed at 7 and a half percent, so that's not taxed. One of them is the fact that these bag fees are not taxed. SEANEY: Yeah, no, there's a couple of things that are really great for airline economics, not necessarily for consumers. And by doing so, you become a volunteer baggage handler and ease the burden on the airline. But also, if you want to avoid that fee, you carry the same bag onto the plane. You mentioned the billions of dollars that airlines make from baggage fees. SIEGEL: Fees for baggage look like a win-win for the airlines. And that's who's really getting charged these bags fees. If you have some sort of airline status, a lot of these bag fees are waived, so it's really about the consumer who likes to comparison shop, who doesn't have a lot of loyalty.
So I think when they're polling their business customers, it's not that big of a worry. They don't want to wait at carousels, for example. They like to get out of the airport quickly. Business travelers don't tend to check a lot of bags. SEANEY: You know, JetBlue is known as a beloved airline for - many times for business travelers.
SOUTHWEST AIRLINES BAGGAGE FEES 2015 FREE
But they don't see the free baggage check standing out as a huge plus. I read a quotation attributed to a JetBlue executive saying that when they survey customers, all sorts of things matter, like Wi-Fi, for one.
SIEGEL: You said they're not going to get dinged for it. They actually announced it late last year and are just now implementing it now. We're not going to get dinged for this anymore, and I think that's why they decided to go ahead and do it. We only have three legacy airlines left - American, United and Delta. And I think, finally, they succumbed and said, hey, all the other airlines are doing it. Why aren't you charging for a bag fee? Last year, $3.1 billion in domestic checked bag fees, and neither Southwest nor JetBlue are participating in that. I have been on the calls for JetBlue and for Southwest. RICK SEANEY: You would have to sort of attribute it to their investor community. I spoke with Rick Seaney, the CEO of, and I asked him why JetBlue caved. That leaves Southwest as the only airline that doesn't. JetBlue, until now a holdout, will charge you to check a bag. Well, our next item may not be the stuff of a Justice Department antitrust investigation, but it is a case of nearly all airlines doing the same thing.
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