These 4 airlines have raised checked bag fees as fuel costs soar
These 4 airlines have raised checked bag fees as fuel costs soar
Delta Air Lines and Southwest Airlines announced this week they are raising prices for checked bags, joining a growing number of U.S. carriers grappling with higher jet fuel costs linked to the war in Iran.
The two airlines raised prices by $10 for the first and second checked bags on most flights — both now charging $45 for the first bag and $55 for the second — after JetBlue and United Airlines announced similar changes to baggage fees last week.
Delta also hiked up the price of a third checked bag by $50, now charging $200. Delta’s changes apply to domestic and select short-haul international tickets purchased on or after Wednesday.
Southwest, whose fee changes take effect Thursday, said in a statement that the move comes “as part of an ongoing analysis of the business and against the evolving global backdrop.”
Delta expressed a similar sentiment in a statement, saying, “These updates are part of Delta’s ongoing review of pricing across its business and reflect the impact of evolving global conditions and industry dynamics.”
Since before the war began, the price of jet fuel in the U.S. has surged by 92 percent — from $2.50 per gallon on Feb. 27 to $4.81 on April 7, according to the Argus U.S. Jet Fuel Index, published by Airlines for America. That puts the price per barrel at nearly $202.
The war has severely disrupted global oil supplies, especially as Tehran has effectively closed off the Strait of Hormuz, through which 20 percent of the world’s oil typically passes. On Wednesday, after a ceasefire agreement was announced, reports surfaced that Iran closed the vital waterway once again, accusing the U.S. and Israel of violating the terms of the deal.
The White House responded by saying the ceasefire will remain in effect as long as the strait remains open. And a team of U.S. negotiators will travel to Pakistan this weekend to meet with Iranian officials, White House press secretary Karoline Leavitt said Wednesday.
Last week, JetBlue announced it would increase the cost of checking a bag by $9 on peak days, charging $49, and by $4 on nonpeak days, charging $39.
Peak days include most of April, the long Memorial Day weekend in May, and all of the summer from June 11 to Sept. 9, along with other popular vacation times in the remaining months.
United Airlines also announced that most travelers would pay $10 more to check bags on flights due to rising jet fuel costs. The airline also scaled back its schedule to save money on fuel, reducing off-peak flights — including red-eyes and midweek routes — that were typically less expensive and less popular.
“The reality is, jet fuel prices have more than doubled in the last three weeks. If prices stayed at this level, it would mean an extra $11B in annual expense just for jet fuel. For perspective, in United’s best year ever, we made less than $5B,” United CEO Scott Kirby wrote in a memo to employees on March 20.
The airline’s chief noted that demand “remains the strongest we’ve ever seen,” adding, “but it may be a challenge to continue passing through much of the increased fuel price if oil stays higher for longer.”
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