United Airlines Hikes Checked Baggage Fees by $10 to $50 Amid Fuel Price Surge

Deep News04-04

United Airlines confirmed on Thursday that passengers purchasing tickets starting Friday will face an increase in checked baggage fees ranging from $10 to $50. This marks the airline's first adjustment to baggage fees in two years, following a similar move by JetBlue announced in late March.

For travelers flying to and from the United States, Mexico, Canada, and Latin America, the fee for the first and second checked bags will rise by $10 each, while the cost for a third bag will see a significant increase of $50.

Although United did not directly link the price hike to recent disruptions in global oil markets caused by conflicts involving Iran, which have driven up jet fuel costs, CEO Scott Kirby has warned in recent weeks that persistently high aviation fuel prices could strain the company's revenue.

In a statement, United Airlines said, "Starting with tickets purchased on April 3 (Friday), customers traveling to and from the U.S., Mexico, Canada, and Latin America will see a $10 increase for the first and second checked bags."

Prior to April 2, the fees for checked baggage were $35 for the first bag, $45 for the second, and $150 for the third. Effective Friday, these will increase to $45, $55, and $200, respectively.

Similarly, fees paid within 24 hours of travel currently stand at $40 for the first bag, $50 for the second, and $150 for the third. Starting Friday, these will rise to $50, $60, and $200.

The airline noted that most passengers can still receive a $5 discount per bag for the first two checked bags if fees are prepaid online at least 24 hours before departure.

United emphasized that eligible travelers—including United Chase credit cardholders, MileagePlus Premier members, active military personnel, and premium cabin passengers—will continue to enjoy complimentary checked baggage.

Earlier in March, Kirby highlighted the significant pressure from rising jet fuel prices, noting that the additional annual costs could exceed twice the company's most profitable year on record.

In an internal memo to employees, the CEO wrote, "The reality is that jet fuel prices have more than doubled over the past three weeks. If prices remain at this level, jet fuel alone would add $11 billion in annual expenses. To put that in perspective, United’s best annual profit ever was less than $5 billion. While that may sound concerning, the first piece of good news is that demand is currently at the strongest level in history. The past 10 weeks have been the top 10 highest revenue booking weeks in the company’s history."

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment