4. Conclusions, implications and limitations
The imposition of checked baggage fees has generated billions of dollars in additional revenues for US airlines. However, the revenue effect may underestimate the positive impact of the fees on the airlines. In this paper, we show that the imposition of the baggage fees is associated with improved operational outcomes for the airlines. In particular, the baggage fees are associated with fewer mishandled baggage reports and a lower rate of airline-caused flight delays. However, in general, no association is found between the imposition of the baggage fees and the rate of customer complaints. This latter result may indicate that passengers have both positive and negative outcomes from the fees e positive in the sense that they are associated with better operational outcomes, but negative in that they are perceived as an additional cost of air travel.