U.S. airlines are passing rising fuel costs on to travellers through higher baggage fees, with American Airlines and Alaska Air among the latest carriers to raise prices. This latest moves come as jet fuel prices have surged sharply since February, driven by conflict in the Middle East and wider disruption to oil supply routes.
American Airlines and Alaska Air New Prices
American Airlines said it will raise checked bag fees by $10 for the first and second bags on domestic and short-haul international routes. That means the first checked bag now costs $50 and the second $60 on many bookings. American is also adding a $5 surcharge for basic economy passengers starting May 18, then those travellers will pay $55 for the first bag and $65 for the second. A third checked bag will cost $200.
Alaska Air is making smaller but still noticeable changes. The airline is increasing its first checked bag fee by $5 and its second by $10 on North American routes and on flights operated by Hawaiian Airlines. It is also charging $200 for a third checked bag, up from $150.
More Carriers Are Telling Passengers to Pay More
American and Alaska are not alone in this. Delta Air Lines and Southwest Airlines have both raised first and second checked bag fees to $45 and $55 on new bookings. Southwest’s change is notable because the airline long marketed free checked bags as a major selling point.
The reason for this change is because fuel is one of the largest expenses for airlines, and prices have risen quickly. Reuters reported that jet fuel averaged about $85 to $90 a barrel in February before climbing to around $209 a barrel globally. That kind of jump can quickly squeeze airline margins and push carriers to raise extra fees or fares.
For passengers, that means flying is getting more expensive even before the ticket price is added. Travellers who check bags, book basic economy or fly on shorter routes are likely to feel the rise first. If fuel prices stay high, more airlines could follow with new charges in the weeks ahead.
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