Delta to Introduce Fee for Second Checked International Bag

Delta Air Lines announced that effective today, for international economy class travel beginning July 1, 2009, customers will be charged a $50 fee to check a second bag. The initiative is one of a series of initiatives that Delta is implementing to increase revenues, reduce costs and preserve liquidity in response to the global recession. Delta expects the second checked international baggage fee to generate more than $100 million annually.

The fee will be applicable for anyone who purchases an economy class ticket on or after April 21, 2009, for travel on or after July 1, 2009.

Certain exemptions to the new policy will apply, including First and Business Class customers; SkyMiles/WorldPerks Elite members (Executive/Platinum/Gold/Silver, including Flying Colonels); active duty military members traveling on orders; customers who purchased tickets prior to April 21, 2009 and customers who are confirmed on a Full Y class economy ticket.

Delta has continued to unbundle certain fees to ensure that customers pay for the services they choose to use. The airline believes that applying this model to international economy class tickets is appropriate based on the success it has had with this model within the United States.

Delta Air Lines is not the first to charge for a second checked international bag. British Airways charges economy class customers a fee to check a second bag on certain international routes.

Other initiatives announced by Delta to increase revenues, reduce costs and preserve liquidity amidst the global recession include: the retirement of Delta’s remaining fleet of 14 Boeing 747-200 aircraft (i.e., freighters); the acceleration of merger synergies and the removal of 40 to 50 aircraft from the fleet this year, including a mix of DC-9, MD-88, B757-200, B767-300, B767-300ER, B747-400 aircraft, along with the B747-200s. In addition, as previously announced, Delta will also reduce international capacity by 10 percent starting in September.

"Despite signs of stabilization in recent demand trends, we expect the revenue environment to continue to be under significant pressure for the remainder of the year," said Edward Bastian, Delta’s president. "We believe lower fuel prices, combined with a focus on accelerating merger synergies and other initiatives will more than offset the revenue decline. The fundamentals of our business remain strong, and once the economic outlook improves, Delta will be best positioned to take advantage of the global recovery."