United Airlines Increases Checked Bag Fees Amid Rising Fuel Costs
Beginning on Friday, United Airlines will be raising its fees for checked baggage by $10 for most travelers. This increase comes as a result of higher jet fuel costs driven by ongoing conflicts in the Middle East. The first checked bag will now cost $45, while a second bag will cost $55 for flights within the United States, Mexico, Canada, and Latin America. This is the first time in two years that United has raised its bag fees.
According to United, the rise in fuel costs, which has already added approximately $400 million to operating costs, is due to the conflict that began on February 28. This increase in fuel prices has also affected other major U. S. carriers, such as Delta Air Lines and American Airlines, with their CEOs reporting similar figures.
However, some United passengers will still be able to check their first bag for free. This includes co-branded credit card holders, certain loyalty-tier members, active military personnel, and travelers in premium cabins. Additionally, customers who check their bags less than 24 hours before departure will now be charged an additional $5.
United’s decision to raise its checked bag fees follows similar moves by Delta and JetBlue, which have both recently increased their fees. JetBlue stated that charging more for optional services used by select customers helps keep base fares competitive. Meanwhile, Delta said that the increase is part of their ongoing review of pricing and reflects the impact of evolving global conditions and industry dynamics.
The ongoing conflict in the Middle East has severely disrupted global oil supplies, particularly in the narrow Strait of Hormuz, where a fifth of the world’s oil typically passes. This has caused crude prices to fluctuate wildly, which in turn affects airlines’ operating costs as jet fuel is refined from crude oil. Fuel is typically the second biggest expense for airlines after labor.
As a result of the increased fuel costs, the average price for a gallon of jet fuel in major hubs like Chicago, Houston, Los Angeles, and New York has reached $4. 88, up from $2. 50 before the conflict began. To cope with these rising costs, airlines are under pressure to find new sources of revenue. Some non-U. S. carriers have already responded by adding fuel surcharges or raising ticket prices. Experts predict that U. S. airlines will also increase fares and add-on fees to offset the higher fuel costs, as they do not typically rely on fuel surcharges.
In addition to the increase in checked bag fees, United also announced a new pricing structure for its premium cabins. On long-haul international routes, transcontinental U. S. flights, and certain Hawaii services, seats in the front cabin will now be divided into three fare types. The new base fare at the bottom will have the lowest upfront price but will not include some perks like advance seat selection and refunds.