Hawaiian Airlines earns record amount from baggage fees - Hawaii News Now - KGMB and KHNL

Hawaiian Airlines earns record amount from baggage fees

Hawaiian Airlines Hawaiian Airlines

HONOLULU (AP) - Baggage fees are a big bonus for Hawaiian Airlines: the company earned more from the fees in 2014 than it did in overall earnings.

The Honolulu Star-Advertiser reports that the carrier made a company record of more than $76 million from checked, overweight and oversized bags in 2014, exceeding its $68.9 million in net income.

American Airlines became the first U.S. carrier to charge for checked bags in 2008 because of the escalating price of oil. Jet fuel prices have dropped dramatically since that spike, but airlines still rely on revenue from baggage fees.

Hawaiian's fuel expenses dropped between 2013 and 2014 and were down another 34.9 percent during the first quarter of this year over the same period in 2014.

The airline also generates money through cancellation fees.

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