United Airlines Increases Baggage Fees Amid Rising Fuel Costs
Starting Friday, travelers who fly with United Airlines will face higher fees for checking their luggage. This change comes as rising fuel costs, influenced by the situation in Iran, impact the airline industry.
The airline has decided to raise the charges for the first and second checked bags by $10 for tickets bought on or after April 3. This will apply to flights within the U.S., Mexico, Canada, and Latin America. Now, the cost for the first bag will be $45 if paid in advance and $50 if settled within 24 hours of departure. The charge for a second bag will increase to $55 if prepaid or $60 at the last minute. For those checking a third bag, that’s an additional $50, totaling $200.
United is the second U.S. airline to increase baggage fees recently, following JetBlue, which raised its fees by as much as $9 on March 30. JetBlue explained to the Associated Press that this move helps to keep base ticket prices competitive by charging more for optional services.
These fee hikes coincide with jet fuel prices nearly doubling since the onset of Operation Epic Fury on February 28. The average price for a gallon of jet fuel at four major U.S. hubs reached $4.88 on Thursday, compared to $2.50 before the conflicts began, according to data from Argus Media referenced by CNBC. United does not hedge its fuel expenses, making it vulnerable to fluctuating spot prices.
United CEO Scott Kirby mentioned in an interview with Bloomberg Television that the airline may need to raise fares by 20% just to break even. He cautioned investors last month that the higher fuel prices had already added around $400 million to operating costs, a situation similar to what Delta and American Airlines are experiencing.
However, certain groups, such as co-branded credit card holders, loyalty program members, active-duty military personnel, and premium cabin passengers, still enjoy one complimentary checked bag, as reported by CNBC.
American Airlines had quietly increased its baggage fees in February, while Delta has not yet made similar changes; though analysts expect the rest of the industry to follow suit soon.
