Continental Charges Passengers’ First Checked Luggage with $15
Last week, Continental Airlines announced that it will be charging its passengers $15 for the first checked luggage. This new surcharge is an attempt of the airline company to recover the losses it incurred due to high fuel prices.
The new fee will be taking effect on October 7 and will be imposed on passengers traveling to US Virgin Islands and mainland United States. Any excess of your luggage in size and weight resPuerto Rico, Canada,trictions will also mean additional fees.
Elite members of the airline’s frequent flier program will be exempted from the new charges. They will also not be applicable to passengers in the first and business class section, full-fare economy and military officials and their families, who are flying on official business.
Continental is the latest airline to impose surcharges on checked in bags since most major airlines such as American Airlines have already done so in the last couple of months. In addition to this surcharge, many airlines have also cut back on flights in order to reduce overhead costs. Delta Airlines has yet to charge their passengers for their checked in luggage while Southwest Airlines does not charge the first luggage.
The decision of the airline company comes after a study on whether passengers would prefer a ticket price increase than several surcharges. Noticing that the luggage surcharges imposed by the other airlines did not sway customers, Continental decided to charge their passengers to compete with the other airlines. The airline did not mention what percentage of their customers will be affected by this new luggage fees.
Costs under recovery remain high despite the considerable decline in fuel prices in the world market. Continental actually lost $48 million during the first six months of the year and was forced to cut 3,000 jobs as well as reduce domestic flights.
