United Airlines Announces Significant Fee Increase

The United States finds itself navigating the economic fallout of the ongoing conflict with Iran. The fighting has disrupted the global oil supply chain, sending energy costs soaring worldwide. Now, the commercial airline industry is starting to feel the squeeze.

Spiking fuel costs have already pushed airfare higher across the board, but United Airlines has now resorted to a significant fee increase to its checked luggage to help cover the costs.

Price of Oil Surges

Attacks on Iran by Israel and the United States have sent global oil prices surging, driving up fuel costs for airlines worldwide.

The conflict has thrown the global oil supply chain into disarray, particularly around the Strait of Hormuz, which is a key chokepoint through which 30% of the world's crude oil passes.

Oil was trading below $60 per barrel before the initial strikes against Iran on Feb. 28. It has since climbed above $100, where it has remained for more than a week.

Jet fuel prices have followed suit. According to the Associated Press, jet fuel prices have jumped more than 85% since the Iran war began on Feb. 28. The average price for a gallon of jet fuel reached $4.64 on Tuesday, up from $2.50 the day before the conflict broke out.

With no end to the fighting in sight, prices could continue their climb over the weeks and months ahead.

United Raises Baggage Fees

Last month, United Airlines CEO Scott Kirby warned that customers would start to see higher fares as a result of the soaring fuel costs. Now, it seems that United is looking to compensate for those costs in a different way.

This week, United Airlines announced that it would be raising its checked baggage fee by $10 as a result of soaring energy costs.

“United is raising first and second checked bag fees by $10 for customers traveling in the U.S., Mexico and Canada and Latin America beginning with tickets purchased Friday, April 3,” United said via CNBC.

United’s new fee will be $45 to check a first bag on most domestic flights if the traveler pays ahead of time and $50 if they pay within 24 hours of their flight.

It's worth noting that airline credit card members, active duty military members, and some premium customers can still check a bag for free.

“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 24 hours before their flight,” United said.

Not Just United

United is not the only airline that has resorted to raising fees on checked baggage. This week, JetBlue announced a similar move.

This week, JetBlue announced that it would be increasing its checked baggage fee by as much as $9. For most domestic economy passengers, the first checked bag now costs $39, which is up from $35. During peak travel times such as April spring breaks, major holidays, and the summer, passengers will have to pay $49 instead of $40, the airline said.

“While we recognize that fee increases are never ideal, we take careful consideration to ensure these changes are implemented only when necessary,” JetBlue said via the Associated Press.

Needless to say, it seems that flying is getting a bit more expensive.