By Jack Denton
United Airlines is raising its checked baggage fees as the airline industry faces rising costs due to the Iran war.
Travellers should brace for more price hikes. That is worrying for investors -- and not just those who own airline stocks.
United will now charge an additional $10, or $45 in total, for the first checked bag on most domestic routes if paid in advance and $50 overall if the change is made closer to the flight.
The change goes into effect for tickets purchased from Friday onwards and is the airline's first bump to checked bag fees since 2024. The move follows a similar decision by JetBlue, which also hiked fees this week.
Price hikes are bad for travelers. But the recent moves may suggest even more trouble for investors.
The airline industry is grappling with rising costs, as a result of the Iran conflict. Jet fuel prices have surged around 70% since the start of the fighting. Airport operators could be the next to suffer.
While airline stocks are depressed -- United and JetBlue shares are down 10% and 12% in a month, respectively, in line with the U.S. Global Jets ETF's 9% monthly decline -- airport operators have so far been more insulated. But if airlines cancel flights, or if people choose to travel less because of higher costs, that could start to bite airport owners as well.
Write to Jack Denton at jack.denton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 03, 2026 08:26 ET (12:26 GMT)
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