At the airline’s Media Day in Phoenix, Ariz., US Airways President Scott Kirby said that there’s been “very little consumer pushback” to the new fees that the airline has started charging.
The airline made $165 million in ancillary revenues last year. They consist of “$116.5 million coming from the first-bag fee, $37.6 million from the second-bag fee, $5.3 million from the Choice Seats program and $5.7 million from increased beverage fees.”
US Airways dropped the soft drink fee owing to customer complaints and the lack of competitive matching. Kirby and Chief Executive Doug Parker were disappointed that the changes were not matched by other airlines. Its executive vice president and chief operating officer, Robert Isom, told ATW Online that “the soft drink fees could have brought in $10 million this year and also helped reduce cabin clutter and waste.”
Kirby has not seen any loss of business to Southwest Airlines, its closest competitor. He expects rising ancillary revenue to compensate for falling yields.
