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News Every Day |

United Airlines is the second US airline to hike bag fees as fuel prices climb

United Airlines' bag drop kiosk at Chicago's O'Hare International Airport.
  • United Airlines is raising bag fees by $10.
  • It will cost $45 to check a first bag if you pay at least 24 hours before departure, per its website.
  • JetBlue raised fees earlier this week, too, as jet fuel costs surge.

United Airlines has become the second US carrier to raise bag fees since the Iran war sent jet fuel prices soaring.

For flights booked from Friday, it will cost $45 to check a first bag if you pay at least 24 hours before departure, according to United's website.

If you check a bag in the airport lobby, fees start at $50. At the gate, it will cost $75.

Those prices are $10 more than for flights booked before Friday.

"United is raising first and second checked bag fees by $10 for customers traveling in the US, Mexico, and Canada and Latin America beginning with tickets purchased Friday, April 3," it said in a statement shared with CNBC.

United did not immediately respond to a request for comment sent by Business Insider outside US working hours.

It comes after JetBlue hiked its bag fees on Monday by between $4 and $9, depending on whether the customer is traveling on a peak day.

"As we experience rising operating costs, we regularly evaluate how to manage those costs while keeping base fares competitive and continuing to invest in the experience our customers value," a JetBlue spokesperson said.

Since the Iran war started on February 28, Brent Crude oil prices have risen 50% to $109 a barrel. However, jet fuel has surged even more. It's doubled in price to almost $200 a barrel, according to data from the International Air Transport Association.

Unlike many airlines around the world, US carriers don't hedge against fuel costs, so they face greater risk from rising prices. Meanwhile, Europe's biggest airline, Ryanair, has locked in lower fuel prices for 80% of its supply until next March, its CEO told Sky News on Wednesday.

In the past, JetBlue has also led the way in raising bag fees, with competitors following. Back in 2018, it was the first major airline to start charging $30 for a checked bag.

Alaska Airlines and JetBlue kicked off the last round of bag fee increases in early 2024. United and most other carriers then raised their prices by $5.

United Chase credit card holders, MileagePlus Premier members, active military members, and customers traveling in premium cabins can still check a bag for free.

Read the original article on Business Insider
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