United Airlines is increasing checked baggage fees from $10 to $50 for travelers purchasing tickets starting Friday, the company confirmed to Fox Business on Thursday.
The increase, which the airline said marks the first hike in baggage fees in two years, comes after JetBlue announced similar measures in late March.
Customers traveling in the United States, MexicoCanada and Latin America can expect a $10 increase on first and second checked bags, while fees for a third bag will increase by an additional $50.
The airline did not say whether the price increase was related to rising jet fuel prices resulting from the recent war in Iran, which has significantly disrupted global oil markets. However, United CEO Scott Kirby has warned in recent weeks that sustained increases in jet fuel costs could weigh on the company’s revenue.
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United Airlines planes head toward a runway at Newark Liberty International Airport on January 27, 2024, in Newark, New Jersey. (Gary Hershorn/Getty Images)
“United is increasing first and second checked bag fees by $10 for customers traveling within the United States, Mexico, Canada and Latin America beginning with tickets purchased on Friday, April 3,” the airline said.
Currently, tickets sold through April 2 show a prepaid baggage fee of $35 for the first bag, $45 for the second and $150 for the third. Starting Friday, these fees will increase to $45, $55 and $200, respectively.
Likewise, bags paid for within 24 hours of travel currently cost $40 for the first bag, $50 for the second, and $150 for the third. Starting Friday, these fees will increase to $50, $60 and $200, respectively.
“Customers in most markets will still receive $5 off if they prepay for their bags online 24 hours before their flight,” the airline » said referring to the first two bags.
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Travelers gather with their luggage in the international terminal at Los Angeles International Airport (LAX) on June 25, 2024 in Los Angeles, California. (Mario Tama/Getty Images)
The airline emphasized that eligible passengers – such as United Chase credit cardholders, MileagePlus Premier members, active military and premium cabin travelers – can still check a bag for free.
Earlier in March, Kirby acknowledged growing pressure from the top jet fuel price, noting that over the course of a year, cost increases could exceed double the company’s most profitable year.
“The reality is that jet fuel prices have more than doubled in the last three weeks,” the CEO wrote in a memo to employees. “If prices remained at this level, that would mean an additional $11 billion in annual spending on jet fuel alone. For perspective, in United’s best year on record, we earned less than $5 billion. That may sound scary, but the first piece of good news is that, for now at least, demand remains the strongest we’ve ever seen. The biggest 10 weeks of booked revenue in our history have been the last 10 weeks.”
Waltz claims Trump is using Iran’s own oil strategy against himself to drive down global prices.
United Airlines CEO Scott Kirby speaks to reporters after a joint news conference on December 13, 2022. (LOGAN CYRUS/AFP via Getty Images / Getty Images)
Earlier this week, JetBlue Airways also increased its checked baggage fees for economy class passengers, citing disruptions to global oil supplies due to the ongoing war in Iran. Under the new structure, the first checked bag now costs about $39 on off-peak days and about $49 during peak periods, an increase of about $4 to $9 from previous rates.
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When an airline raises its fares, its competitors often follow. However, no additional indications have yet been received from American Airlines, Delta Air Lines, Southwest Airlines or Frontier Airlines that they are considering taking similar action.
Fuel prices rose to multi-year highs after the U.S.-Israeli conflict with Iran erupted on Feb. 28, disrupting about 20% of the global oil supply that normally passes through the Strait of Hormuz.
Teleprinter Security Last Change Change % UAL UNITED AIRLINES HOLDINGS INC. 92.21 -2.87 -3.02% As of Thursday, jet fuel in major U.S. markets averaged $4.88 a gallon, up more than 95 percent from the day before the war began, according to Argus data. published by Airlines for America.
Eric Mack of FOX Business contributed to this report.