US airlines raise checked baggage fees amid rising costs

United Airlines joined the ranks of American Airlines and JetBlue Airways in increasing checked baggage fees for customers traveling within North America. The move comes as carriers grapple with mounting maintenance and labour contract costs, coupled with weakened pricing power in the domestic market.

Effective February 24, United passengers flying economy within the US will face a revised fee structure, with the first checked bag priced at $40 at the airport or $35 when paid in advance. The cost for a second checked bag will be $50 at the airport and $45 in advance.

The adjustment follows a trend initiated by American Airlines and followed by JetBlue Airways, which recently announced similar fee hikes. American Airlines increased the price for a first checked bag to $35 when booked in advance online, or $40 at the airport. Meanwhile, JetBlue raised its fees for a first bag to $35 if booked online in advance, or $45 at the airport.

Explaining the rationale behind the fee hikes, JetBlue cited significant increases in operating costs attributed to higher wages, elevated fuel expenses, and other inflationary pressures exacerbated by the ongoing effects of the COVID-19 pandemic. The airline emphasized the necessity of such measures to return the company to profitability and offset the escalating costs associated with baggage transportation.

These fee adjustments have caught the attention of lawmakers, with Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, revealing an ongoing investigation into airline fees for baggage, seat selection, and ticket changes. This scrutiny underscores growing concerns over transparency and fairness in pricing practices within the airline industry.

In a related development, the U.S. Transportation Department proposed regulations in September 2022 to mandate airlines to disclose fees for baggage, ticket changes, and family seating at the initial display of airfares. However, previous attempts to regulate airline fees, including proposals for "reasonable and proportional" baggage and change fees in 2018, were abandoned under pressure from the airline industry.

(With Reuters inputs)