Airlines in the United States, notably United, American, and JetBlue, have recently announced plans to raise checked baggage fees as the aviation industry contends with escalating fuel and labor expenses.
Each of them charges customers more for checking their bags at the airport or close to their departure compared to paying online in advance to check a bag, reports CNBC.
Carriers are urging customers to pay in advance to check their bags before their flight, arguing that this approach will streamline operations at check-in areas and expedite travelers to their gates.
American Airlines:
Earlier this week, American Airlines raised its checked bag fees for the first time in over five years and implemented the two-tiered strategy that United, JetBlue, and several budget airlines have already adopted.
American Airlines customers traveling in coach will now pay $35 to check a first bag for domestic flights if the service is booked online in advance, or $40 if they purchase the option at the airport, the carrier announced Tuesday. Previously, American Airlines charged $30 for either service.
United Airlines:
United Airlines began charging customers more for paying for checked bags at the airport in 2020. On Friday, the carrier announced it was raising bag fees by $5 for most flights in North America to $35 if customers prepay online at least 24 hours before their flight, or $40 otherwise, starting with bookings made on February 24. A second checked bag will cost $50, or $45 if paid for at least 24 hours in advance.
JetBlue Airways:
JetBlue Airways, a low-cost airline based in New York City, has recently doubled checked baggage costs for customers who check in their luggage less than 24 hours before the trip. According to the company's website, customers flying within the United States, Latin America, and the Caribbean will be charged $45 for one bag and $60 for a second bag if they check in within 24 hours before departure. Before the adjustments, which were initially disclosed by The Points Guy, JetBlue charged $35 for the first bag and $60 for the second bag for consumers who checked in less than 24 hours before departure.
Why are airlines raising baggage fees?
Airlines argue that higher costs such as labor and fuel, their biggest expenses, necessitate the increase in bag fees.
Explaining the rise in checked baggage prices, JetBlue stated: “The cost of doing business has increased significantly due to higher wages, elevated fuel costs, and other inflationary pressures, and we have remained unprofitable since Covid.”
“While we don’t favor fee increases, it’s one step we are taking to restore our company to profitability and offset the increased costs of transporting bags,” JetBlue said in a statement regarding its latest adjustments. “By adjusting fees for additional services that only certain customers use, we can keep base fares low and ensure customer favorites like seatback TVs and high-speed Wi-Fi remain free for everyone.”
“Due to inflation, fuel costs, and increased operating expenses, the new fees for first and second checked bags on all American Airlines routes within the U.S., including Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands, will be increased,” stated American Airlines.
The Transportation Department’s latest data shows that luggage fees are a significant revenue source for airlines. In the first nine months of 2023, U.S. airlines generated more than $5.4 billion from baggage fees, up more than 25% from the same period in 2019.