5 of the top 6 US airlines increased checked bag fees since Jan 2024 due to a tax-law loophole.
5 of the top 6 US airlines increased checked bag fees since Jan 2024. An important reason for this, often overlooked, is a tax-law loophole in the US. Airlines pay 7.5% of ticket prices to the federal government, but this tax doesn't apply to baggage. By charging separately for bags, airlines can save money on taxes. This tax-related strategy allows them to keep the baggage fees higher and maintain profitability.
March 28, 2024
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