Following the footsteps of American Airlines and JetBlue Airways, United Airlines announced on Friday a surge in checked baggage fees for customers traveling within North America. Effective February 24, passengers flying economy in the U.S. with United will incur a charge of $40 for the first checked bag or $35 if paid in advance. The second checked bag will now cost $50 at the airport and $45 in advance.
This move by major U.S. airlines comes against a backdrop of increasing maintenance and labor contract costs for carriers coupled with a weakening pricing power in the domestic market. Notably, this marks the third hike in checked baggage fees by United in the past four years. Previously, United raised prices for checked bags at airports by $5 to $35, with a reduced rate of $30 for online advance payments.
The fee adjustments align with broader industry trends, as U.S. airlines collectively collected nearly $6.8 billion in baggage fees in 2022 and an additional $5.5 billion in the first nine months of 2023. These increases are reflective of the financial challenges faced by the industry, with rising costs attributed to factors such as increased wages, higher fuel costs, and other inflationary pressures.
JetBlue, in explaining its fee hike, said that the adjustment is a response to the significant rise in the cost of doing business due to various economic factors, including increased wages and fuel costs. The airline, like many others, is grappling with financial challenges exacerbated by the lingering impact of the COVID-19 pandemic.
Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, had announced an investigation into airline fees for baggage, seat selection, and ticket changes in November. In September 2022, the U.S. Transportation Department proposed regulations requiring airlines to disclose fees for baggage, ticket changes, and family seating upfront when displaying airfares.
