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Report: New Carry-On Fee From Allegiant Air

April 5, 2012

CNN reports that Allegiant Air has joined fellow low-cost carrier Spirit Airlines in charging a fee for carry-on luggage stored in overhead bins.

The fee is between $10 and $30 and does not apply to bags that can fit under the seat. If the passenger chooses to pay during airport check-in, the fee rises to $35.

The new fee is largely a response to the rising cost of fuel. "Allegiant has one of the oldest and most fuel-inefficient fleets in the airline industry," Vaughn Cordle, an analyst from AirlineForecasts, told CNN.

Founder of George Hobica said that, if the new fee is successful, it may push larger carriers to try it.

"It's a distinct possibility. Monkey see, monkey do. Clearly, Spirit Airlines didn't go bust for doing so, and now Allegiant is dipping its toes into the water," Hobica told CNN.

"Since there's no regulation banning such a fee, and especially because overhead bin space has not kept up with demand from passengers trying to avoid fees (leading to countless fights and unpleasantness for both passengers and crew) I don't see why at least one legacy carrier wouldn't try it."

Read CNN’s story here.

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