United Offers One-Year Pass for Checked Bags for $249
Monday, October 05, 2009 12:03:37 PM

Oct. 5 (Bloomberg) -- UAL Corp.’s United Airlines, the third-largest U.S. carrier, will begin offering annual subscriptions for $249 that allow passengers to check two bags at no additional cost any time they fly.

The fee for the so-called Premier Baggage service also covers checked luggage for as many as eight companions traveling under the same confirmation code as the subscriber, Chicago- based United said today in a statement.

United led major U.S. airlines in 2008 in charging $25 for a second bag to boost revenue beyond tickets. The new service may help attract semi-regular travelers and families, said Brett Snyder, a Long Beach, California-based consultant who runs the CrankyFlier.com blog and is a former United employee.

“It’s money in the bank, and it will help them keep the loyalty of some customers,” Snyder said. “If a person uses this once or twice, even if they find a cheaper flight next time on another airline, they’re going to be more likely to pick United because they already bought this thing.”

Most big airlines charge $15 each way for the first bag and $25 for the second if they are checked online; each bag costs an extra $5 at the airport. That means a single passenger checking two standard bags per round-trip flight would begin saving money with United’s subscription on the fourth trip.

Members of United’s frequent-flier program who travel 25,000 miles a year don’t have to pay for a first or second bag, the airline said. U.S. carriers collected $669.6 million in baggage fees in the second quarter, more than triple the year- earlier total, according to the U.S. Transportation Department.

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