Allegiant Air Mulls Fee for Carry-on Bags

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Allegiant Air, the Las Vegas-based discount airline, says that it may begin charging fees for stowing carry-on bags in overhead compartments on its planes later this year.

The pending decision comes at a time when the airline industry is exploring new ways to counter the higher cost of jet fuel with so-called ancillary fees, for everything from seats with more legroom to luggage.

"Its something we're looking at," said Allegiant spokesperson Jordan McGee. "A decision is a long way off."

Allegiant president Andrew Levy first disclosed in an interview with Business Las Vegas that he was considering such a fee.

The move would make Allegiant the second airline in the U.S. to charge for carry-on bags. Spirit Airlines charges up to $45 each way for carry-on bags, the only other U.S. carrier to charge such a fee.

Spirit earlier this week said it would launch service to Las Vegas from Los Angeles International Airport with fares starting at $9 each way, but then slashed the price to $1 after several competitors cut their prices.

McGee acknowledged that high oil prices have impacted Allegiant. However, he said the carrier has not begun to see any problems with passenger traffic. Earlier this month, Allegiant reported three consecutive months of record unit revenue, starting in December.
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