With jet fuel prices currently at nearly five-year highs and the war in Iran unleashed by the U.S.-Israeli strike continuing to escalate, airlines have started passing on their rising costs to consumers.
JetBlue Airways was the first major carrier to raise the cost of luggage on domestic flights from $35 to $39 and add an additional $10 fee for those who wait less than 24 hours before departure to add luggage to their booking. The airline cited “rising operating costs” as the reason for putting in “fee increases [that] are never ideal.”
With airlines often raising prices for baggage in waves as soon as a competitor does the same, it did not take long for United Airlines to follow suit and raise its checked baggage fees from $35 to $45 for those who pay for a checked bag for domestic flights ahead of time and $50 for those who add it last-minute.
“United is raising first and second checked bag fees”
“United is raising first and second checked bag fees by $10 for customers traveling in the U.S., Mexico and Canada and Latin America beginning with tickets purchased Friday, April 3,” the airline said in a statement.
Those who receive a free checked bag through status with the airline or the Chase Sapphire credit card will continue to do so while baggage prices for international flights also remain unchanged.
Related: Low-cost airline CEO gives stark warning about jet fuel
But on domestic flights, prices for the second checked bag will also be raised from $50 to $60 and from $150 to $200 for the third bag.
Since the start of March, United CEO Scott Kirby has given several interviews in which he warned that the impact on passengers as airlines work to pass on their losses through higher prices “will probably start quick.”
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“The reality is jet fuel prices have more than doubled,” United CEO Scott Kirby
“The reality is, jet fuel prices have more than doubled in the last three weeks,” Kirby wrote in an internal memo sent out to employees on March 20. “If prices stayed at this level, it would mean an extra $11 billion in annual expense just for jet fuel. For perspective, in United’s best year ever, we made less than $5 billion.”
Two other airlines that have not yet raised prices, American Airlines and Delta, have both also spoken of the losses that they will incur if jet fuel prices continue at current rates. On the week ending on March 29, oil prices in the U.S. averaged at $4 per gallon while prices for ready-to-use jet fuel were at $195 per barrel.
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Delta CEO Ed Bastian had previously said an increase in oil prices of just one cent per gallon would lead to more than $40 million in annual losses for the airline. Over in Europe, Ryanair’s Michael O’Leary became the latest to give an interview in which he warn of rising jet fuel prices and warn that the airline is “never in control of pricing.”
O’Leary did not comment on any potential price hikes on airfare or baggage but refused to rule out the possibility when pressed.
Related: JetBlue cracks down on baggage in a way you won’t like
