What Does Your Airfare Actually Buy?

American Airlines introduced a fee for a passenger’s first checked bag in 2008. Fees have proliferated for flyers since.

Credit Robert Nickelsberg/Getty Images
American Airlines introduced a fee for a passenger’s first checked bag in 2008. Fees have proliferated for flyers since. Credit Robert Nickelsberg/Getty Images
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What Does Your Airfare Actually Buy?

American Airlines introduced a fee for a passenger’s first checked bag in 2008. Fees have proliferated for flyers since.

Credit Robert Nickelsberg/Getty Images
American Airlines introduced a fee for a passenger’s first checked bag in 2008. Fees have proliferated for flyers since. Credit Robert Nickelsberg/Getty Images

It’s not enough to look for the cheapest airfare anymore.

Not when airlines are increasingly dividing and subdividing their cabins and charging separately for what used to be part of the fare. More legroom? That will be an extra charge. Overhead bin space? Only if you buy a more expensive ticket.

In the new world of airfares, similar-sounding fare classes like “economy” and “basic economy” can mask big differences in the level of service being offered. Complicating matters further, booking websites often do a poor job of explaining what travelers are actually getting for the listed price.

“You need a supercomputer sometimes to figure out what you are getting and what you are not getting,” said Henry Harteveldt, a travel industry analyst at Atmosphere Research Group. “Just to add confusion to the mix, obviously not every airline’s lowest fare includes or excludes the same things.”

With a basic economy ticket on American Airlines, Delta Air Lines and United Airlines, travelers can’t select a seat in advance. But on Delta, basic economy passengers are still permitted to use the overhead bins if there is available space. On American and United, those overhead compartments are off limits to those who purchase the lowest fares — unless the passenger is an elite member of the airlines’ reward programs.

“You have to do more research than ever,” said Paul Hudson, the president of FlyersRights.org, a consumer advocacy group. “Even if you think you know your way around this, things are changing to the point that you have to constantly review what’s best for you.”

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Not that long ago, airline tickets were much more self-explanatory. There were just two or three “classes” of seats, and even the coach fare came with decent legroom and allowed at least one checked bag. For no extra charge, a lucky traveler might wind up with some extra legroom in an exit or bulkhead row.

That started to change in 2008, when American Airlines introduced a fee for a passenger’s first checked bag. Since then, the whole industry has introduced more and higher fees each year, charging for priority boarding, Wi-Fi, onboard entertainment and even selecting a seat in advance. The Trump administration recently rejected a rule that would have compelled airlines to alert passengers to baggage fees earlier and more prominently in the booking process.

All those fees have played a big role in helping airlines return to profitability after years of losses and bankruptcies. The airlines have also benefited from lower fuel costs over the past decade and less competition on most routes.

Revenue from fees and other payments is “growing every year because it works,” said Jay Sorensen, the president of IdeaWorksCompany, a consulting firm that focuses on the airline industry.

According to a report his company released this fall, the airlines made more than $82 billion in ancillary revenue — fees from passengers and other payments from partners like credit card companies and hotels — in 2017. That is about $46 billion more than five years ago. The report, sponsored by CarTrawler, a company that provides car rental recommendations on many airlines’ websites, used data released by 66 airlines last year to extrapolate the likely ancillary revenue of 184 carriers worldwide. The majority of the reported revenue came from à la carte service fees.

“Airlines that make good profits are better airlines,” Mr. Sorensen said in a phone interview between connecting flights. “We came through the ’80s where the airlines were threadbare. I’m in Minneapolis right now in a gate area where there are new carpets, all the seats work and there’s lots of information available on flat screens.”

Alison McAfee, a spokeswoman for Airlines for America, an industry trade group, defended the new fare and fee structure as a good thing for everyone. “The concept of unbundling fares has enabled carriers to keep base fares low, while providing customers with more choice about what they value and are willing to pay for to meet their individual needs, at price points that work for their budgets,” she said in an email.

Many travelers are especially concerned with the initial cost of their ticket. “They will spend hours, sometimes as much as several days, shopping for flights where the airfare fits their budget,” Mr. Harteveldt said. However, once they buy the cheapest ticket, many travelers go on to purchase small upgrades that improve the quality of their trip.

“While they’ll certainly shop to find that base airfare, they’ll turn around and spend some of that money they saved on amenities to have a more pleasant trip, whether that’s a seat with more legroom or lounge access or whatever else,” Mr. Harteveldt said.

He also pointed out that booking megasites like Kayak and Orbitz usually emphasize low prices above all, but do a poor job of explaining what is excluded from basic economy fares. Often, he said, such sites do not detail the benefits of buying a slightly more expensive standard economy ticket — if the option to do so is listed at all. Mr. Hudson, the consumer advocate, said that many times, travelers are best off visiting individual airline websites to see the full array of options available to them.

As the airlines continue to further unbundle their fares, Mr. Harteveldt said, customers may have to change the way they consider ticket purchases. “It helps to think about shifting your minds from buying fares to buying products,” he said. “Nose to tail, it’s just a matter of time before everything on the airplane becomes an à la carte experience.”

Carriers have also been using years of data on passenger preferences and behaviors to determine which amenities can be mined for moneymaking fees.

“Airlines have perfect information on this because every time someone assigns themselves a seat, they know about it,” Mr. Sorensen said. “They can go in and capture that data and learn when this happened and which seats go first.”

He compared choosing — and possibly paying extra for — a particular seat to buying real estate. “A lakefront cabin with a beach is worth more,” he said

Business travelers can often opt for that higher priced ticket. Corporate policies vary, but many companies allow their employees to buy regular economy fares rather than basic tickets, Mr. Harteveldt said.

He suggested that leisure travelers consider more than just the official price tag. Booking a ticket or flying an airline that prevents you from selecting a seat in advance, for example, can mean getting separated from your family on the plane.

Some may find a more expensive ticket with fewer restrictions worth the extra cost “if they’re traveling with children or a trip where there’s a lot of emotional pressure on them — a family vacation or something,” Mr. Harteveldt said. “The last thing you want to do is have your vacation ruined.”

The New York Times



Saudi Real Estate Market Maintains Investment Momentum Despite War Fallout

Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
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Saudi Real Estate Market Maintains Investment Momentum Despite War Fallout

Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)
Residential developments in Saudi Arabia (Ministry of Municipalities and Housing)

Saudi Arabia's real estate market continues to attract investment despite geopolitical challenges weighing on economic activity worldwide, supported by new housing developments and efforts to expand residential supply.

The Ministry of Municipalities and Housing announced that more than 15,000 residential land plots had been made available through the Sakani platform across the Kingdom between the beginning of 2026 and the end of October, alongside additional projects launched by private-sector developers.

The developments underscore the sector's continued momentum and its importance to the Saudi economy.

Government initiatives and private-sector projects aim to expand housing supply and meet growing demand, reinforcing real estate's position as a key driver of economic growth and diversification.

Strong domestic demand and ongoing urban development projects continue to underpin the market's appeal, attracting investment from both Saudi and international investors.

Against a backdrop of geopolitical uncertainty and war-related disruptions to trade, supply chains, financing costs and construction expenses, the real estate sector has gained importance as an industry driven largely by domestic demand and capable of sustaining economic activity.

Private-Sector Investment

Despite mounting global economic volatility and geopolitical tensions, Saudi Arabia's real estate market continues to attract international investment, supported by clear economic policies, expanding development opportunities and strong housing demand.

Real estate developer Arada recently announced its entry into the Saudi market through a partnership with local company XTOPIA, backed by a SAR 50 billion ($13.3 billion) portfolio of land and development opportunities.

The partnership's first project is a SAR 14 billion residential development in Riyadh's Al Rimal district.

Riyadh Region Municipality, the Ministry of Municipalities and Housing, and the National Center for Privatization & PPP also recently announced the launch of the expression of interest, prequalification and proposal submission stages for a joint land investment project.

The initiative involves developing a municipal land plot in northern Riyadh through a 50-year partnership with the private sector, marking the municipality's first project under the joint investment model.

Real estate specialists described the initiative as an important step toward enabling private investors to develop property assets into sustainable projects with significant economic value.

They said the extended investment period would encourage developers to improve construction quality and services, strengthen project feasibility, diversify real estate offerings and increase supply in one of the capital's most expensive neighborhoods.

Balancing the Real Estate Market

The importance of releasing more residential land lies in achieving greater balance in the property market, a government objective outlined by Crown Prince and Prime Minister Mohammed bin Salman.

The strategy seeks to increase housing supply by making more land available, broadening the options accessible to Saudi citizens and enabling more households to move from searching for a home to building and owning one.

Increasing the availability of residential land, particularly in cities and governorates experiencing rising demand, could ease pressure on land prices over the medium term, provided that plot locations and sizes correspond to actual market needs.

The release of additional land also creates opportunities for real estate developers, contractors, engineering firms and building materials suppliers to benefit from anticipated demand for construction projects.

As a result, businesses across the real estate and construction supply chain could see stronger activity despite the impact of the geopolitical crisis on other economic sectors in the region.

The initiative also expands housing choices, supports efforts to increase homeownership rates and improve quality of life, and encourages urban development beyond major metropolitan centers.

Lowering Prices

Real estate developer Ahmed Omar Basoudan believes the main challenge facing Saudi Arabia's property market in the coming period will not simply be increasing the number of land plots and housing units available.

Rather, he said, the priority must be ensuring that homes reach buyers at prices they can afford, while providing adequate infrastructure and services and keeping development and construction costs under control.

Speaking to Asharq Al-Awsat, Basoudan explained that genuine balance in the real estate market depends on the availability of housing that meets buyers' needs in terms of price, location and quality, rather than simply increasing overall supply.

He said the release of more than 15,000 residential land plots during the first 10 months of the year, together with recently announced private-sector projects, reflected the government's continued commitment to expanding housing supply and providing more residential options.

Basoudan stressed that the latest real estate developments represent an important step toward addressing one of the market's most pressing challenges: achieving a sustainable balance between supply and demand, particularly amid the Kingdom's population growth and continued urban expansion.


Saudi Stocks Rebound 0.9%, Recouping Previous Session's Losses

An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
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Saudi Stocks Rebound 0.9%, Recouping Previous Session's Losses

An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)
An investor monitors stock market data on a screen at the Saudi Exchange (Tadawul) in Riyadh (Reuters)

Saudi stocks closed higher on Monday, recovering some of the losses sustained in the previous session as heavyweight shares strengthened and the banking sector advanced.

The benchmark Tadawul All Share Index (TASI) rose 0.90% to close at 10,106 points, gaining 90 points. Total trading value reached approximately SAR 3.5 billion ($933 million).

The index had fallen 0.8% on Sunday amid selling pressure on heavyweight stocks.

Anaam International Holding Group, Fitaihi Holding Group and Raoom were among the session's top gainers, rising between 7% and 9% to close at SAR 11.93, SAR 2.11 and SAR 72.30, respectively.

On the losing side, Almunajem Foods led the declines, shedding 9.20% to SAR 49.94, followed by Saudi Paper Manufacturing Co., which fell 6.18% to SAR 48.88, and Alamar Foods, which dropped 4.63% to SAR 44.06.

At the sector level, banks led the gains, advancing 1.60%, supported by a 2.06% rise in Bank AlJazira shares, which closed at SAR 10.89.


Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says

Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
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Tesla to Refund Many Cybertruck Deposits as Demand Exceeds Production, Musk Says

Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)
Tesla Cybertruck electric vehicles sit parked in a storage lot in San Diego, California on April 11, 2025. (AFP)

Tesla will have to refund Cybertruck deposits for many customers as orders far exceed production capacity, CEO Elon Musk said, following last week's announcement that the electric vehicle maker is winding down the pickup truck's production at its Texas factory.

"We will try ‌to make ‌as many as ‌possible ⁠before shutting down the ⁠line in about 8 months, but will have to return deposits for a lot of people," the billionaire said in a post on X on Monday.

The comments ⁠come after Musk said ‌Tesla would ‌add an extra production shift to fulfill outstanding ‌Cybertruck orders before dismantling the production ‌line next year to expand output of its Cybercab robotaxi.

The production winddown is slated for mid-2027, Musk announced on ‌Friday, with the resources being redirected to the Cybercab, a vehicle ⁠central ⁠to the automaker's autonomous-driving ambitions.

Tesla began delivering the Cybertruck in late 2023, but demand has fallen far short of Musk's expectations. US sales fell 48% to 20,237 units last year, according to Kelley Blue Book, well below Musk's earlier projection that annual Cybertruck sales could reach 250,000 vehicles.