Airlines go after carry-on luggage
A second U.S. carrier has begun charging for carry-on luggage that goes into overhead bins.
The airline said it start charging a $35 fee to passengers who take up overhead space. I imagine Allegiant will soon have the roomiest overhead bins in the business.
You can still bring a purse or a briefcase with you for free, as long as it fits under the seat. Anything bigger than that, and you'll have to pay.
You might also have the option to reserve overhead space in advance for a smaller fee, but Allegiant hasn't said what that fee will be.
Shareholders applauded the move. Allegiant shares rose nearly 3% Tuesday to $56.69.
The other airlines are paying close attention to this one. Allegiant isn't the first U.S. carrier to charge for carry-ons. Spirit Airlines said in 2010 it would charge as much as $45 for a carry-on bag, and said the move would help it lower fares and improve in-flight safety.
Is this the start of an industry-wide trend? The Boston Globe calls Allegiant's move "another domino in the run toward carry-on baggage fees for all."
The carry-on fee is a natural sequel to the industry's move to charge for checked luggage. Only Southwest (LUV) still allows travelers to check two bags for free, and most other airlines charge to check anything. As a result, more travelers started lugging huge carry-on bags with them.
The revenue from fees and other "nonticket" items rose to $32.5 billion for the industry last year -- and that shows no signs of slowing. Airlines are getting increasingly creative with fees, tempting travelers with things like flight interruption insurance, The New York Times reports. One airline, Air New Zealand, has even begun offering debit cards.
More from Top Stocks
- GM slips as March sales disappoint
- The perfect Rx for your portfolio
- Charts hint at Holy Grail of stock performance
'The move would help it lower fares'.
So if it used to be $200 a ticket and now it only costs $185 a ticket...but then you add in the carry on bag fee of $35 it ends up actually being $220 a ticket!!
So they 'raised' fares after all.
Not that stupid, sorry.
Nope. Won't be flying Allegiant. -What do you think about that, shareholders?!
I should not get charged for my soft-sided bag that is too big to fit under a seat, but does easily fit in the overhead.
Speaking of overhead....anyone caught putting their carry on bag in the overhead more than 2 rows away from their seat should have their bags tossed onto the tarmac!!!!! Their selfishness does nothing but add to frustration of others trying to find space, and it causes undue delay.
Come to Southwest Airlines where there are no bag fees. Love it that other airlines do this. It only helps Southwest Airlines.
Thank you other airlines!
So the airlines started charging for any checked luggage.....I started packing less and made it fit in my carry-on luggage so I would not have to pay extra (and my luggage got lost several times which is why I prefer to carry it myself!). NOW they want to start charging for my carry-on luggage too!!!! Not cool. It is my guess (and I think its a pretty good one) that majority of people who fly somewhere WILL have some sort of luggage, whether it is checked or a carry-on. Please tell me that the cost of flights will go down now?!?!?!?
I hate flying....you have to wait in long lines, are already restricted on what you can even bring on the plane, and they rarely go as planned, which even when that happens they rarely take full responsibility. We pay a significant amount of money to fly and now you want to charge even more for luggage that you know passengers have to bring on.
It's a slap in the face! Why don't you start charging to use the toilet, or overhead air, or overhead lights....this is getting way out of hand! Maybe you need a little refresher on morals and ethics!!!!!
its just all so simple.....the seats are way too close so you eye the emergency seats and notice that they give more leg room so you want one of them. Now the airlines call that seat the "economy plus" and they charge more for them. You are on a four hour flight and you get a bit hungry and perhaps they will give you something to eat, but you just get a small juice and find they charge for the salted peanuts. You see they have an online movie but they charge for the headphones to hear it. You are sleepy and they charge for a pillow. Now you are cramped in a much too small area, hungry, thristy, tired and pissed after having been charged ALOT of cash for all this wonderful service never mind what what happened to you back at the nice TSA check points. Then one day someone has had enough and just snaps ! and we all think OMG its a terriorist and they drag this poor soul off to god only knows.
In a nut shell these airlines are making your "economy" flying so bad your more then happy to pay two times the price to fly first class so you get roomy seats, good food, two free checked bags, Bose headsets so you never hear the aircraft noise as you sleep in your seat thats almost like a bed, first on the plane/ first off and after all this you arrive at your city more rested then when you start your flight.
For the rest of us, its just all "back of the bus" and dont cry or they might put you on the "no fly list"
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.