Do Airline Fees Keep Fares Low?

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Dec. 24 (Bloomberg) -- Cowan & Co. Senior Research Analyst Helane Becker discusses her outlook for the airline industry in 2014 on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Charges, saying and allows them to keep fares low.

The numbers very now, is it really the case?

Well, the costs are going up so fares are going up.

But aside, they are not going up as much as they would have if they did not have the ancillary fees to offset.

Yet we are all paying the ancillary fees, so it is really a disguised way of paying for it.

When does it become too much?

People say, you are hitting me with so many fees, i don't care about the low fare so i understand it.

I think as long as the airlines are being transparent for what they are charging you for, it is not as onerous as you think.

Most people, because they either have the airline's credit card or they have status, they don't pay the fees.

They may pay a second checked bag fee but you probably don't need to bring all of that stuff with you anyway.

Here is the best business class, such a contrast to coach class.

Amenities, extra legroom.

I wonder if the business class experience will keep improvement -- improving as they pump money into this valuable group or did a look at them as a cash cow to squeeze more out of them?

You are already paying so much.

There is such a differential between coach and business class that it is hard to keep pushing those costs up.

But what the airlines want to do is change your behavior.

Those $200 change fees for changing a ticket, a lot of times it is more than what you would have paid for the ticket to begin with.

That if you wait longer to book your ticket, you are going to pay a higher fare.

If you pay a higher fare, you often don't have the change fees.

Alternatively, is there any airline you know of trying to compete on a better customer service and experience in coach?

Jetblue kind of does this -- i was going to say, nobody really delivers a great product and coach -- to be better, to be more friendly -- it is not about the experience anymore.

It is really about getting on the plane, getting to where you are going in a timely fashion.

What people are willing to pay for is reliability and timeliness.

I think that is key.

Spirit airlines charges people for carry-on luggage but is it the worst offender in fees?

They are.

I tell you, i think the carry-on bag fee and overhead bin works for an airline like spirit or allegiant but i am not come in stable work for united -- i think at that point the government steps in and says enough is enough for the charging.

You try to bring you back on the plane or you could charge not to bring it on the plane.

Now that people don't want to pay, everyone and their brother is jamming every piece of luggage on the plane and it is causing flights to leave the late.

The further development, the infamous standing seats, is that going to happen based on what you sent?

I don't think so.

I think the faa has put a stop for charging using the restroom and letting people stand up on plane.

No one can ever be transferred using a restroom on a plane among because i don't want anyone to not use it.

The seats don't recline anymore.

A lot of seats don't recline.

It is ok.

You don't really need the person back in your knees and everybody is uncomfortable and there are fights.

But you want to sleep on the other hand and you need to recline for that -- david needs to recline a little bit.

You can pay for business class.

Helane becker fromcowan and company, happy holiday season.

Coming up, our agenda.

We will have more on "bloomberg surveillance." ?

This text has been automatically generated. It may not be 100% accurate.


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