Airlines' drive to grow extra fees and services is paying off big—for them
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Loading your bags in the belly of your plane stopped being a courtesy a decade ago. Now bag check fees, and other services can cost extra, and earn airlines billions of dollars in additional revenue annually. Mark Peterson/Getty ImagesIn 2007, the world's top 10 carriers collectively took in just $2.
Merchants buy airline’s mileage points to give to their own customers as rewards for doing business with those merchants, similar to the way grocers in the mid-20century rewarded customers’ loyalty with trading stamps. But mostly its banks that buy mileage points from airlines to give to customers who use their “co-branded” credit cards with particular airlines to buy not only travel services but everything from entertainment and restaurant meals to groceries, cars and even homes.
Nowhere else in the world are consumers so tied into just one airline and so comfortable with using credit cards to purchase goods and services not related to travel or the airline whose points they will earn with their purchases. Still, over the last 40 years airline mileage points in the U.S. have become a popular, even coveted alternate currency, both for those who travel a lot and those who rarely if every board a commercial plane.
That top 10 was rounded out by Ireland’s Ryanair, Lufthansa, AirFrance/KLM, Britain’s easyJet and Air Canada.
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