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Why do airlines charge so much for checked bags? This obscure rule helps explain why

Five out of the six biggest US airlines have raised their checked bag fees since January 2024.

Take American Airlines. In 2023, it cost $30 to check a standard bag in with the airline; however, as of March 2024, it costs $40 at a US airport – a whopping 33% increase.

There are many reasons why airlines alienate their customers with baggage fees instead of bundling all charges together, but an important, often overlooked cause is buried in the US tax code.

Airlines pay the federal government 7.5% of the ticket price when flying people domestically, alongside other fees. The airlines dislike these charges, with their trade association arguing that they boost the cost to the consumer of a typical air ticket by around one-fifth.

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