Most United Airlines travelers will now have to pay US$10 more to check their bags starting Friday, as rising jet fuel costs linked to the war in the Middle East push another major US airline to raise fares.
According to United, customers traveling to the United States, Mexico, Canada and Latin America will now have to pay US$45 for their first bag and US$55 for the second.
“This is the first time in two years that the airline has increased its checked baggage fees,” United said in a statement.
Some passengers will continue to receive a free first checked bag, including partner credit cardholders, certain loyalty program members, active duty military personnel and premium class travelers. Guests who check their bags less than 24 hours before departure will be charged an additional US$5 fee.
United joins JetBlue, which on Monday increased its checked baggage fees by up to US$9 during peak periods, as the war in the Middle East continues to seriously disrupt global oil supplies, particularly near the Strait of Hormuz, where a fifth of the world’s oil usually transits. This has led to sharp fluctuations in crude prices, which affects airlines’ operating costs because the fuel used by their planes is refined from crude oil.
JetBlue said charging more for optional services used by some customers helps keep base fares competitive. Like United, the company will continue to offer a free first checked bag to certain customers.
The average price of a gallon of kerosene in Chicago, Houston, Los Angeles and New York reached US$4.88 on Thursday, compared to US$2.50 before the conflict began on February 28, according to Argus Media. The U.S. Kerosene Index from the company specializing in energy market analysis tracks average prices in these major centers.
Speaking to investors at a conference last month, United boss Scott Kirby said rising jet fuel costs had already added about US$400 million to operating costs. The CEOs of Delta Air Lines and American Airlines reported similar figures.
Fuel is typically the second largest expense for airlines, after labor.
Analysts expect U.S. airlines to pass on rising fuel costs to travelers by raising additional fees or ticket prices, as they generally do not implement fuel surcharges, while a number of non-U.S. carriers have already added such surcharges.
