The U.S. airline industry is all set to experience a fare hike in 2010. The already higher checked bag fees and fuel surcharge is expected to rise. Delta Air Lines Inc, Continental Airlines Inc and the United Airlines are expected to initiate the move by increasing the charges to check the first and second bag by this month.

After the recession and rise in Aviation Fuel prices, the airlines started charging for meals, specific seats, blankets and pillows. However, charging for the first baggage was not initiated. With the introduction of First Baggage Fees, the airlines are expected to experience a smooth inflow of cash. The First Baggage Fees is proving to be a leveler for aviation industry as it is helping to make up the extra cost.

Regarding the price hike and inclusion of First Baggage Fees, the President of AeroEcon, Mr. David Swierenga said that passengers are expected to experience price hikes throughout 2010. These measures are expected to make up for the big loss that most of the airlines incurred in the year, 2009. In fact, nine largest U.S. Airlines incurred a combined loss of $3 billion through the first nine months of 2009.

To make the right move, the AMR Corp.'s American Airlines and US Airways Group Inc. are sitting together to sort out on the structure of the price for the checked luggage. In all probability, the price hike will be from $15 to $23 for the first luggage and from $25 to $32 for the second one. These changes are only applicable for online check-ins as there is the airport transaction of $2 for the first one and $3 for the second one. When asked about this, Steve Cosgrove, owner of Dynamic Travel & Cruises Inc. is of the opinion that airlines would like to continue with the process of hiking First and Second Baggage Fees because it is free money for them.

The Southwest has also taken up the trend of charging bag fees. According to Gary Kelly, Chief Executive Officer, Southwest it is a great measure as there is a greater utilization of space.