Airlines Collected $7.3 Billion in Baggage Fees in 2024 — And Now the Disclosure Rule Is Gone

If you've booked a flight recently, you already know the drill: you find a fare that looks reasonable, click through to checkout, and then watch the price climb as fees pile on — checked bag fees, carry-on fees, seat selection fees, fees to sit next to your own family. By the time you hit "purchase," the price you're paying can be double what was advertised.

This isn't an accident. It's a business model. And in 2024, it generated a record-breaking $7.3 billion in baggage fees alone for U.S. airlines — up from $7.1 billion in 2023, according to data from the Bureau of Transportation Statistics. That figure doesn't even include seat upgrade fees, change fees, or the dozens of other ancillary charges airlines have invented over the past decade.

The Rule That Would Have Changed Everything

In 2024, the Biden administration's Department of Transportation (DOT) finalized what it called the "Junk Fees Rule" — a regulation that would have required airlines to disclose all mandatory fees upfront, at the very first point of sale, before consumers entered their personal information or began the checkout process. The rule targeted what regulators called "surprise fees" — charges that are technically disclosed somewhere in the booking process, but buried so deep in the fine print that most travelers never see them until it's too late.

The rule would have applied to fees for checked bags, carry-on bags, seat selection, and flight cancellations. Airlines would have been required to show these fees alongside the advertised ticket price, making it genuinely possible to compare the true cost of flying from one carrier to another.

How Airlines Turned Fees Into a $157 Billion Business

Baggage fees are just the beginning. According to a 2025 analysis by aviation consultancy IdeaWorksCompany, U.S. and global airlines are on track to collect a combined $157 billion in ancillary revenue — a category that includes everything from bag fees to premium seat upgrades to onboard food and beverage sales. This figure has grown more than tenfold since airlines first began unbundling fares in the mid-2000s.

The strategy was pioneered by Spirit Airlines and quickly adopted by every major carrier. The logic is simple: advertise the lowest possible base fare to attract price-sensitive travelers, then recover margin through fees that are harder to compare across airlines. Basic economy fares — which often don't include a carry-on bag or the ability to choose a seat — have become the standard entry point at Delta, United, and American Airlines.

"The advertised price is increasingly fictional. What you actually pay depends on a maze of fees that airlines are not required to show you upfront."

The Specific Fees You're Paying

Here's a snapshot of what the major U.S. carriers were charging as of early 2026 for a domestic round-trip flight:

Checked Baggage: Most major airlines charge $35–$40 for the first checked bag and $45–$50 for the second. On a round trip with two bags, that's $160–$180 in fees on top of your ticket price.

Carry-On Bags: Basic economy fares on Delta, United, and American now prohibit full-size carry-on bags. Spirit and Frontier charge $50–$99 for carry-ons at the gate.

Seat Selection: Choosing a specific seat — even a standard middle seat — can cost $10–$30 per flight segment on most carriers. Families traveling with children may be forced to pay these fees to sit together.

Change and Cancellation Fees: While major carriers eliminated change fees for most fares during the pandemic, basic economy tickets still typically cannot be changed or refunded.

What You Can Do Right Now

Use the DOT's Airline Fee Comparison Tool. The Department of Transportation maintains a database of airline fees at transportation.gov. While it's not always up to date, it provides a baseline for comparison.

Book directly with the airline. Third-party booking sites often don't display all fees. Booking directly gives you the clearest picture of what you'll actually pay.

Consider an airline credit card. Most major airline co-branded credit cards include free checked bags for the cardholder and companions. If you fly a particular airline even a few times per year, the card's annual fee is often offset by bag fee savings alone.

File a complaint with the DOT. If you believe an airline has engaged in deceptive fee practices, you can file a complaint at airconsumer.dot.gov. The DOT tracks these complaints and uses them to inform enforcement priorities.

Know your refund rights. Under current DOT rules, airlines are required to provide refunds — not just travel credits — for canceled flights and significant schedule changes. If an airline offers you a voucher instead of a cash refund for a cancellation, you are entitled to push back.

The Bigger Picture: Who's Fighting for Travelers?

With the junk fee disclosure rule struck down and the CFPB facing significant rollbacks, consumer advocates are increasingly looking to state legislatures and Congress for relief. Several states have introduced legislation that would require fee transparency at the state level, though the airline industry has argued that federal law preempts state regulation of airfares.

In Congress, the bipartisan Transparent Airfares Act has been introduced in multiple sessions but has yet to advance. Consumer advocacy groups including Travelers United and the National Consumers League continue to push for federal legislation that would require all-in pricing — where the advertised fare includes all mandatory fees — as a baseline standard.

Until that day comes, the burden of navigating airline fee structures falls entirely on the consumer. ConsumerHonor will continue to track these issues and provide you with the information you need to make informed decisions.