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QUESTION

# Any charge that is not airfare is referred to as ancillary revenue for airlinesand they are cleaning up on it to the tune of $20 billion a year. Any charge that is not airfare is referred to as ancillary revenue for airlines—and they are cleaning up on it to the tune of$20 billion a year. While consumers can avoid some fees, such as those for food, preferred seating, and wi-fi, the majority can't avoid baggage fees. What type of pricing strategies are airlines using? Is it ethical for airlines to charge baggage fees?

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