According to the u. s. department of transportation, u. s. commercial airlines collected over $3.5 billion in baggage fees in 2014. some airlines even charge passengers to bring carry-on bags onto the plane. how do baggage fees affect traveler's behavior? what is a potential cost to the airline from this policy that might offset the benefit from the bag revenues?

passengers may pack less to minimize fees or check baggage. carrying less baggage can lead to fuel savings and a lighter plane.

passengers may look for flights at other airlines or stop flying altogether.

airlines will experience an increase in fuel costs requiring them to increase fares.

passengers will vacation more and not care about the increase in the fees.

IF these are options, the answer would be

Passengers may pack less to minimize fees or check baggage. Carrying less baggage can lead to fuel savings and a lighter plane.

Passengers (on the average) will seek to minimize their costs, but will probably not stop flying altogether. Also, the less baggage on a plane, means cost savings for the airline.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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