Delta Joins the Crowd, Adds First-Bag Fee

CHARLOTTE, N.C. -- In announcing that it will accept the inevitable and add a first-bag fee, Delta(DAL Quote - Cramer on DAL - Stock Picks) offered a glimpse into airline passenger psychology.

Five months ago, AMR(AMR Quote - Cramer on AMR - Stock Picks) unit American introduced the concept, saying it would charge passengers $15 to check a first bag. It took time, but gradually all six legacy carriers signed on. The last one, before Delta, was Continental(CAL Quote - Cramer on CAL - Stock Picks), which added the fee in October.

Delta had thought it might benefit by holding itself out as a carrier that eschewed the fee. Southwest(LUV Quote - Cramer on LUV - Stock Picks) did the same, mounting an advertising campaign boasting "Low Fares (and) No Hidden Fees."

But Delta's holdout proved pointless. "The increase in bags being carried on board Delta aircraft this year tells us that customers are not differentiating Delta as the only major airline not charging for a first checked bag," said Delta Chief Operating Officer Steve Gorman, in a prepared statement.

In other words, passengers were carrying more bags onto Delta flights because they falsely perceived that Delta had added the same fees its peers had.

One possible conclusion here is that no good deed goes unpunished. Another is that while people may like to complain about airlines charging fees for bags and other extras, they are paying them anyway.

As Gorman noted, "As we align customer policies and fees to simplify the travel experience for our customers throughout the merger, Delta is adopting proven practices from both Delta and Northwest that have been broadly accepted in the marketplace." Delta added the fee as it moved to coordinate policies with Northwest, which it acquired last week.

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