Airlines' New Fee Gambit

Airlines are packaging fees and selling them with a smile

U.S. airlines are honing their retailing skills by promoting extra fees as choices passengers won’t want to pass up. “This is the model of the future,” says Jay Sorensen of IdeaWorksCompany. JetBlue Airways is expected to join the fees fray in 2015 by charging for a first bag, along with bundles of extra services, to boost revenue. American Airlines has already adopted a bundling system, as shown below for a Denver to New York LaGuardia round trip in November.

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