No bag fee helps increase revenue
airlines have cut capacity by reducing flights or moving to smaller planes the last 18 months as traffic has fallen. That distorts comparisons.
However, he said, “I’m simply saying that we reduced our capacity, and we’re carrying more passengers, while our competitors are reducing capacity and carry less passengers.”
“We can’t prove to you it is the source of that (market share) shift, but what we can prove is the awareness,” Kelly said. “The ad campaign has been very powerful. It definitely has penetrated the American traveler’s consciousness. They definitely know that we don’t charge for bags.”
Kelly said the strategy and campaign began paying hermes uk off in the second half of 2009, when revenue began rising sharply.
“We significantly out performed the industry in 2009 revenue production and believe our record 2009 load factors and revenues dw hermes uk arf what we would otherwise have collected in bag fees,” Kelly said.
Th hermes uk e rest of the industry, meanwhile, began reporting big revenue f hermes uk rom charging passengers to check luggage. airlines made more than $2 billion from bag fees, according to the Transportation Department’s Bureau of Transportation Statistics.