Airlines in the United States, notably Alaska, American, and JetBlue, have recently announced plans to boost checked baggage fees as the aviation industry grapples with rising fuel and labor expenses.
All these airlines charge passengers more if they check their luggage at the airport or close to departure.
Carriers are urging customers to pay to check their luggage before their flight, arguing that this will free up staff members at check-in desks and get passengers to their gates quickly.
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Last week, United Airlines, which is major US airline, hiked checked baggage fees for passengers traveling in North America. These hike announcement came after American Airlines and JetBlue Airways announced similar raise.
According to the airline, United passengers traveling in economy class in the US after February 24 will pay $40 for the first checked bag, or $35 if paid in advance. The customer has to pay $50 for the second bag check at the airport, or $45 in advance.
While carriers’ maintenance and labor contract expenses have increased, its pricing power has eroded in the domestic market of the United States.
Four years ago, United increased the price of checked luggage at airports by $5 to $35, or $30 if passengers paid in advance via online mode.
The United issues a statement, stating, “For the first time in four years, United is raising checked bag fees for customers traveling in North America.”
“United Chase credit card holders, MileagePlus Premier members, active military members and customers traveling in premium cabins can still check a bag for free, and customers in most markets will still enjoy a $5 discount if they prepay for their bags online at least 24 hours before their flight,” it added as per The USA TODAY.
On Tuesday, American Airlines announced a modification, stating that no checked bags hikes were announced since 2018. According to the revised rules, checking in a bag on American Airlines domestic flights will now cost $40 for the first bag and $45 for the second bag, up from $30 and $40, respectively. The first checked bag fee can be slightly lower, at $35, if purchased online rather than at the airport.
The airline is also raising its checked luggage prices on flights to Canada, Mexico, the Caribbean, Central America, and Guyana. Flyers will pay $35 (up from $30) to check in one bag, and $45 (up from $40) for a second.
While the rise is significant, American Airlines claims that it has reduced charges on enormous and heavy bags, stating in a press release that this is their “lowest fee ever.”
“Due to inflation, fuel costs and increased operating costs, 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 $35 for first checked bags purchased online, $40 for first checked bags purchased at the airport and $45 for second checked bags purchased online or at the airport. These new fees apply to all bookings made on or after February 20,” the airline said in a statement to Newsweek.
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 would 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.
Explaining the increase in checked baggage prices, JetBlue said: “The cost of doing business has gone up significantly due to increased wages, higher fuel costs, and other inflationary pressure, and we remain unprofitable since COVID.”
Alaska Airlines hiked their checked baggage costs on January 2, raising the cost of a checked-in bag from $30 to $35 for one bag and $40 to $45 for another bag.
Luggage fees are a significant revenue source for airlines. According to the Transportation Department’s most recent data, US airlines collected more than $5.4 billion in fees for baggage in the first nine months of 2023, an increase of over 25 percent over the same period in 2019.
Airlines have maintained that increased labor and fuel costs, which are their largest expenses, forced them to boost baggage prices.
“While we don’t like increasing fees, it’s one step we are taking to get our company back to profitability and cover the increased costs of transporting bags,” JetBlue said in a statement while talking about the recent hike. “By adjusting fees for added 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.”
Senator Richard Blumenthal, who heads the Permanent Subcommittee on Investigations, stated in November that he was looking into airline costs for baggage, seat selection, and ticket modifications.
In September 2022, the United States Transportation Department suggested that airlines should publish surcharges for luggage and ticket modifications.
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