Airlines navigate through recession by charging you extra fees

Last year as high fuel costs and slumping passenger demand crippled the airline industry, many airlines imposed ”extra fees” in order to cope. It began with checked bags, spiraled into pillow-and-blanket sets, and has now snowballed even further.

Carriers now charge for choosing an exit row seat ($20 at AirTran Airways) or a seat with more legroom ($35 at Spirit Airlines). Heck, just choosing a seat BEFORE the flight can bring an extra charge to your credit card ($5 to $35 at Northwest). Other fees involve “oversized bags” and traveling with your pet. Fortunately, this article lists ways to avoid them.

In mid-2008, American Airlines became one of the first major US airlines to jump into the fray. But now that it’s been almost a year, has the strategy paid off?

Oh yeah. And then some.

For US Airways, revenues driven by first- and second-checked bag fees represented a major leap from $183 million to reach $912 million in 2008. That is unbelievable, especially in an industry mired with years of bankruptcies. So what’s the downside?

As you might expect, passengers are complaining and earlier this year, US Airways returned to serving free soft drinks beginning in March 2009. (The airline still expects to generate $400 million to $500 annually from fees alone.)

Aside from the profits, some airlines hear you complaining and just don’t care. Check out this commercial from low-fare carrier Spirit Airlines. Not very subtle, but you get the picture that when it comes to charging extra fees in order to keep costs down, they mean business. (Spirit sends passengers to vacation spots in Florida, the Caribbean, and Latin America and pioneered the super-low-cost, à la carte approach for air travel in the US.)

I guess it could be worse; airlines could charge to use the toilet. Wait. Irish airline Ryanair says this might not be so far-fetched.

Eh. I’ll just hold it.