The profit’s in the cargo hold
Author: Andrew MacCorquodale | Category: Aviation, TravelWe’ve all heard of the European discount airlines such as RyanAir and EasyJet. These business models have always been somewhat of a mystery to me. How do you sell plane tickets for as low as €1 a person and stick around to tell the story? It’s always been clear that there’s some overselling going on (I’ve heard numbers upwards of 30%), but that’s still a far cry from covering the operating costs of the aircraft, let alone general overhead.
As I’ve been planning the details for our spring vacation to Greece, I’ve been introduced to the world of baggage fees. For the purposes of this post, I’ve converted all of the weights from KG to LBS and Euros to Canadian Dollars (CAD).
Let’s start with RyanAir, arguably the cheapest European operator:
- Included in your ticket is an allowance for one bag, weighing up to 33 LBS
- For $50, you can check a second bag, weighing up to 33 LBS
- If either bag exceeds 33 LBS, an overage charge of $15 per LBS is applied
The message? Don’t show up at the airport with your 50 LBS bag, or you’ll pay over $250 in overage charges.
For comparison purposes, let’s take a look at EasyJet, another discount European operator:
- No bag allowance is included in the purchase of your ticket
- Up to two bags, weighing 44 LBS each, may be purchased for $16 each
- If either bag exceeds 44 LBS, an overage charge of $8 per LBS is applied
- Regardless of what you pay, no single bag can exceed 70 LBS
If you’re travelling lightly, these limitations won’t cause a problem, but the key is to carefully plan and manage the weight of your bags or you could be stuck paying hundreds of dollars to catch that €1 flight.
That said, the fact that these airlines operate top notch aircraft (so I’ve been told), plus the higher cost of fuel in Europe, makes it difficult for me to believe that these operators are profitable simply off of the expectation that enough passengers will poorly plan their baggage requirements.
If there is anyone out there with additional knowledge of the European discount airline operating model, I would love to hear from you.
Over the last few months I’ve casually researched the availability of a 



