NEW YORK (CNNMoney.com) -- Fees for such things as checked baggage and soft drinks accomplished their purpose, boosting airline revenues for the sixth straight month, an industry group said Wednesday.
The Air Transport Association of America said passenger revenue jumped 25% in June, compared to the same month in 2009.
ATA spokesman David Castelveter said the rise in revenue stems from "a combination of improving economic conditions, increase in business travel and revenue from ancillary fees."
This is welcome news to the airlines, which have struggled with slumping demand because of the recession and volatile fuel prices over the last couple years.
To take the sting out of lost revenue, most airlines have tacked on a slew of extra fees, known as ancillary fees, for checked baggage, drinks, curbside check-in, pet travel and other services that used to be included in the price of fare.
Airline stock activity was mixed Wednesday.
The stock for AirTran (AAI) was down 4% after disappointing results and lower-than-expected profit. But the stock for U.S. Airways (LCC, Fortune 500) rose 3% after reporting earnings that beat estimates.
U.S. Airways Chief Executive Doug Parker said the earnings increase was a result of a three-year plan to "return to profitability, including reducing capacity, maintain cost discipline, increasing ancillary revenues and establishing industry-leading operational reliability."
This electric car start-up still has only prototypes so far, but they have big plans to take a chunk of the market. More
President Trump is keeping his word to 'do a big number' on the 2010 Dodd-Frank financial reform law by signing orders that seek to review regulators' authority to unwind a bank on the brink of failure and to label nonbank firms as risky institutions. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Investing a small portion of your retirement savings in gold would add diversification to your portfolio, but it's probably not necessary. More