Delta Air Lines announced on Tuesday that it will be increasing its checked baggage fees, in response to the rising cost of jet fuel. This is a trend that has been seen across multiple U. S. carriers, as they try to offset the impact of the ongoing conflict in the Middle East.
Effective Wednesday, most passengers on domestic and short-haul international flights will now have to pay $45 to check one bag, $55 for a second bag, and $200 for a third bag. This represents a $10 increase for the first two bags and a $50 increase for the third bag.
Other airlines, such as United and JetBlue, have also recently announced similar increases in baggage fees.
According to a statement from Delta, these changes are a result of the airline’s regular review of pricing and are a reflection of the current global conditions and industry trends. This is the first time in two years that Delta has raised its checked baggage fees for domestic flights.
However, there are still some exceptions to these fees. Customers traveling in premium cabins, active-duty military personnel, certain credit card holders, and members of loyalty programs will still be able to check bags for free. These changes will not affect fees for long-haul international flights.
During a recent earnings call, Delta CEO Ed Bastian revealed that the ongoing conflict in the Middle East has already added an additional $400 million to the airline’s operating expenses. Similar figures were reported by United and American Airlines.
Delta is set to report its first-quarter earnings on Wednesday, making it the first U. S. airline to do so. This will provide travelers with an early indication of how the rising cost of jet fuel may impact their future travel plans.
The conflict in the Middle East has caused major disruptions in global oil markets, with a significant impact on jet fuel prices. The Strait of Hormuz, a crucial waterway through which a fifth of the world’s oil passes, has been a major point of concern, leading to a sharp increase in fuel prices. For airlines, fuel is typically the second-highest expense after labor.
The average price for a gallon of jet fuel in major hubs like Chicago, Houston, Los Angeles, and New York has risen from $2. 50 to $4. 81 since the start of the conflict, according to Argus Media, an energy market intelligence company. In response to these rising costs, U. S. carriers are likely to increase ticket prices and rely more on ancillary fees. Meanwhile, non-U. S. carriers are implementing fuel surcharges to offset these expenses.