Airlines posting profits so fare sales may wane

Good times are finally back for the nation's airlines. For travelers, that means it's getting harder to find bargains.

The summer travel season got off to a roaring start, fares are up, and money is rolling in from fees on things like checked baggage.

The six biggest U.S. airlines earned about $1.3 billion in the second quarter, and more profits are expected for the rest of the year. Even so, airlines are still woozy from the one-two punch of record-high fuel prices followed by a recession. Those six big carriers lost $22.7 billion in 2008 and 2009.

There were plenty of fare sales when the airlines were struggling to fill seats. Now those seats are in demand, so deals are less common. And travelers are paying for "extras" such as an aisle seat, checking bags and buying a ticket over the phone — things that used to be part of the fare.

Here's a look at what travelers can expect in the months ahead:

FARES AND FEES

The airlines are hooked on fees after two years of using them to overcome, first, high fuel prices and then slumping travel demand. A new study shows that worldwide, carriers took in $13.5 billion from fees in 2009, a 43 percent jump in just one year.

"Fees are going to stick and they're going to become more pervasive," says Jay Sorensen, a former airline executive who is now president of consulting firm IdeaWorks, which did the study on fees.

United and American led the way on "ancillary revenue," including fees, at about $1.8 billion apiece last year, according to IdeaWorks. United Airlines President John Tague calls fees "an unequivocal success," and suggests his airline could still double the amount it's bringing in with baggage fees.

Everyone is watching to see if travelers pay Spirit Airlines' fee of $45 for some carry-on bags on flights starting Aug. 1. Most of the big airlines have promised Sen. Charles Schumer, D-N.Y., they won't follow Spirit's lead.

Airlines have been able to boost ticket prices too. Summer fares are up an average of 18 percent, according to figures from a trade group for the big airlines.

Travel demand will taper off as fall approaches — Continental Airlines is already seeing that. Still, airlines will try to avoid slashing prices. Rick Seaney, CEO of FareCompare.com, says the airlines are getting better at waving sale prices in front of customers but selling most seats at higher fares.