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United Airlines is increasing its checked bag fee by $10 to $50 for travelers who purchase tickets starting Friday, the company confirmed to Fox Business on Thursday.
The increase, which the airline said was the first sign of a fund hike in two years, comes after JetBlue announced similar measures in late March.
Customers flying in the US, Mexico, Canada and Latin America can expect a $10 increase for the first and second checked bags, while the third bag fee will jump by an additional $50.
The airline did not specify whether the price increase was related to the high cost of jet fuel stemming from the recent war in Iran, which has severely disrupted global oil markets. However, United’s chief executive, Scott Kirby, has warned in recent weeks that continued high jet fuel costs could hurt the company’s finances.
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United Airlines planes take off on the runway at Newark Liberty International Airport on January 27, 2024, in Newark, New Jersey. (Gary Hershorn/Getty Images)
“United is increasing the first and second checked bag fees by $10 for customers traveling to the US, Mexico and Canada and Latin America starting with tickets purchased on Friday, April 3,” the airline said.
Currently, tickets go on sale April 2 through the fund’s pre-paid list for $35 for the first fund, $45 for the second, and $150 for the third. Starting Friday, those fees will increase to $45, $55, and $200, respectively.
Similarly, bags paid within 24 hours of travel currently cost $40 for the first bag, $50 for the second, and $150 for the third. Starting Friday, those fees will increase to $50, $60, and $200, respectively.
“Customers in most markets will still enjoy a $5 discount if they pre-pay for their bags online 24 hours before flight,” the airline said, referring to the first two bags.
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Travelers collect their luggage at the international terminal at Los Angeles International Airport (LAX) on June 25, 2024 in Los Angeles, California. (Mario Tama / Getty Images)
The airline stressed that eligible passengers — such as United Chase credit card holders, MileagePlus Premier members, active duty military members, and travelers in premium cabins — can still check a bag for free.
Earlier in March, Kirby acknowledged increasing pressure from higher jet fuel prices, noting that by the end of the year, increased costs could more than double the company’s most profitable year.
“The truth is, jet fuel prices have more than doubled in the last three weeks,” the CEO wrote in a memo to employees. “If prices stay at this level, it would mean an additional $11B in annual jet fuel costs. In perspective, in United’s best year, we’ve made less than $5B. That may sound scary, but the first piece of good news is that, right now, demand remains the strongest we’ve ever seen. The 10 biggest revenue booked in our 10 weeks has been 10 weeks.”
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United Airlines CEO Scott Kirby speaks to reporters after a joint press conference on December 13, 2022. (LOGAN CYRUS/AFP via Getty Images/Getty Images)
Earlier this week, JetBlue Airways also raised its checked bag fees for economy passengers, citing disruptions to global oil supplies from the ongoing war in Iran. Under the new structure, the first bag loaded now costs about $39 on off-peak days and about $49 on peak travel times, roughly $4–$9 compared to previous prices.
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When an airline raises fees, competitors usually follow. However, there are no other indications yet from American Airlines, Delta Air Lines, Southwest Airlines, or Frontier Airlines that they plan to take similar steps.
Oil prices rose to multi-year highs after the US-Israel conflict with Iran erupted on February 28, disrupting nearly 20% of the world’s oil supply that normally flows through the Strait of Hormuz.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 92.21 | -2.87 |
-3.02% |
As of Thursday, jet fuel in major US markets averaged $4.88 per litre, up more than 95% from the day before the war, according to Argus data published by Airlines for America.
FOX Business’ Eric Mack contributed to this report.
