U.S. Airlines Raise Checked Baggage Fees Amid Rising Costs

United Airlines has joined American Airlines and JetBlue Airways in increasing checked baggage fees for passengers traveling within North America, citing higher operational costs. Starting February 24, 2024, United’s economy passengers in the U.S. will face a fee of $40 for the first checked bag when paying at the airport and $35 if paid in advance. The fee for a second checked bag will rise to $50 at the airport and $45 if paid in advance.

This adjustment reflects the airlines’ response to escalated maintenance and labor contract expenses, alongside a diminishing pricing power in the domestic market. U.S. airlines collectively amassed nearly $6.8 billion in baggage fees in 2022, and $5.5 billion in the first nine months of 2023 alone, indicating the significant revenue generated from these charges.

American Airlines and JetBlue have also announced similar fee increases, attributing the adjustments to the need to cover higher wages, fuel costs, and other inflationary pressures exacerbated by the COVID-19 pandemic. JetBlue specifically mentioned the fee hike as part of its strategy to return to profitability and manage the elevated costs associated with baggage transport.

The topic of airline fees has attracted legislative attention, with Senator Richard Blumenthal investigating charges for baggage, seat selection, and ticket changes. Moreover, the U.S. Transportation Department proposed regulations in September 2022 to enhance transparency around these fees, requiring airlines to disclose costs for baggage, ticket changes, and family seating at the initial display of airfares.

This trend of increasing fees comes despite previous congressional resistance, under pressure from the airline industry, to mandate “reasonable and proportional” charges for baggage and changes. As airlines navigate the financial challenges post-pandemic, passengers are advised to plan accordingly to accommodate these additional costs.