$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 Continentalâ€™s percentage of seats filled will drop 1 to 2 percent but the company will see â€śsubstantially higherâ€? mainline domestic yields.
â€śMore 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 nationâ€™s fourth-largest airline will begin charging $15 for passengerâ€™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.