WASHINGTON — Think that $79 fare from Washington to Florida is a steal? Travelers across the United States are discovering that bargain tickets frequently balloon once seat assignments, carry-on bags, and other “extras” are tallied. According to new data, 2024 was the costliest year yet for airline junk fees, and the trend shows no sign of easing.
Airline junk fees surge past a record $148 billion
The latest study from consulting firm IdeaWorksCompany reports that carriers worldwide generated $148 billion in so-called ancillary revenue during 2024, surpassing the previous high of $109.5 billion set in 2019. Ancillary revenue encompasses everything beyond the base fare, including checked bags, overhead-bin space, seat selection, early boarding, onboard food and drink, Wi-Fi, and even cash generated from selling frequent-flyer miles to credit-card partners. Jay Sorensen, who authored the IdeaWorks analysis, said the add-on approach reflects consumer behavior as much as airline strategy. “You get what you pay for,” Sorensen said in an interview published with the report, adding that à-la-carte pricing tempts flyers to pay for “more comfort and convenience.”
Five carriers now earn more from fees than from tickets
IdeaWorks evaluated the balance sheets of 61 airlines and found five that collected a majority of their income from fees rather than fares:
- Frontier — 62 percent of total revenue
- Spirit — 58.7 percent
- Volaris — 55.3 percent
- Breeze — 54 percent
- Allegiant — 52.9 percent
Frontier became the first carrier worldwide to cross the 60 percent threshold, demonstrating the extent to which the low-fare model relies on extras. Traditional U.S. airlines, such as American, United, and Delta, still generate most of their revenue from ticket sales; yet, even they leaned on fees in 2024: passenger-paid ancillary revenue climbed 5.3 percent, offsetting losses tied to discounted base fares.
Loyalty programs create another river of cash
Credit-card agreements tied to frequent-flyer miles remain a lucrative side hustle. Alaska, American, Delta, Southwest, and United collectively earned $28 billion in loyalty revenue in 2024, according to the report. For travelers, that means more card offers in their inbox—and potentially richer mileage bonuses—because banks are competing fiercely for co-branded partnerships.
Regulators press for transparency, airlines push back
The Biden-Harris administration unveiled rules in 2024 that would have required airlines and online travel agencies to display any mandatory fees at the beginning of the booking process. The proposal aimed to provide consumers with a clear view of the true cost of a flight, rather than surprising them at checkout. Airlines for America, the industry’s chief lobbying group, challenged the regulation, and a federal appeals court blocked it in February. With the case sidelined, analysts say the U.S. Department of Transportation is unlikely to pursue the matter further in the near term. Meanwhile, under current leadership, the DOT has begun unwinding other passenger protections—such as automatic refunds for extreme delays—that had been adopted earlier in the decade.
Why junk fees matter to leisure travelers
For vacationers piecing together low-cost itineraries, the fee explosion can erase the advantage of a seat sale. A one-way airfare advertised at $59 to Detroit often does not include:
- $35-$50 for the first checked bag
- $30-$60 for a standard carry-on
- $20-$45 for choosing a seat in advance
- $6-$12 for a soft drink and snack combo
- $10-$30 for priority boarding or extra legroom
Add just two or three of these services, and the true cost of the cheap fare may jump beyond the price of a traditional airline ticket that bundles the basics.
Tips for Travelers: Trimming or avoiding airline junk fees
- Compare “all-in” totals. Run the itinerary through multiple booking sites until you reach the final payment screen, then jot down the full price—including bags, seats, and taxes—for each carrier.
- Weigh credit-card perks. Some airline co-branded cards waive the first checked bag fee for you and a companion, which can help offset the annual fee if you fly that airline twice a year.
- Travel ultralight. Personal-item bags that fit under the seat usually remain free. Pack a soft-sided backpack that measures no more than 18 inches by 14 inches by 8 inches to avoid carry-on charges.
- Skip seat selection. Most low-fare carriers will assign a seat at the gate at no cost. Families with young children should check each airline’s policy; some guarantee adjacent seating for minors.
- Bring your own snacks and water bottle. The TSA allows empty bottles through security, and most airports have refill stations.
- Download the airline app. Some carriers offer discounted bag fees or seat upgrades if purchased before arriving at the airport.
FAQ: Airline junk fees and ancillary revenue
Why have fees expanded so aggressively?
Fuel prices, aircraft leases, and wage increases remain volatile. Unbundling fares allows airlines to advertise eye-catching low prices while protecting their profit margins through optional extras.
Are any fees regulated?
The United States caps charges for involuntarily denied-boarding passengers and restricts tarmac delays, but luggage, seat, and boarding fees are largely unregulated.
Do refund rules apply to ancillary fees?
Yes. If the airline cancels your flight, federal rules require it to refund both the ticket price and any fees you paid upfront, such as baggage or seat charges.
Which carriers still include bags and seats in the fare?
Southwest offers two free checked bags and open seating. Most international full-service airlines include at least one checked bag on long-haul routes, though basic-economy fares may be exempt.
Will transparency rules come back?
Consumer advocates argue that Congress could legislate fee disclosure, but any new mandate would likely face strong airline lobbying and potential court challenges similar to the 2024 case.
The bottom line for 2025 and beyond
As airlines sharpen their focus on ancillary revenue, travelers can expect more à la carte offers rather than fewer. Loyalty credit cards may sweeten sign-up bonuses to entice shoppers, yet the ease of paying for perks with points can mask the true cost. With demand strong and seat capacity tight, especially on leisure routes to Florida, California, and other sun destinations, the best defense remains careful comparison and a willingness to travel light. By budgeting for extras before pressing “purchase,” vacationers can still capture low base fares without blowing up their final bill. Fee-free flying may be a relic of the past, but savvy planning can keep the sting to a minimum.
