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$100 Million For Checked Baggage

Continental Airlines will average about $100 million a year in fees and savings by charging passengers to check their luggage, reported USA Today.

An increase in fuel prices has caused airlines around the country to raise their fares and lower available seating. According to USA Today, an SEC filing Thursday said Continental’s percentage of seats filled will drop 1 to 2 percent but the company will see “substantially higher� mainline domestic yields.

“More bookings on significantly less capacity is simply a drawn-out way of expressing 'pricing power,"' JP Morgan analyst Jamie Baker wrote. "While we are often dismissive of bookings commentary, Continental's language appears (to us) an effort to assuage largely misplaced investor fears that demand is poised to crater."

Starting Oct. 7, Continental, the nation’s fourth-largest airline will begin charging $15 for passenger’s first checked bag. The New York Times reported that bags exceeding weight and size restrictions could be subject to additional fees, the airline said.