JetBlue is hiking its baggage fees to counter higher fuel costs sparked by the Iran war – potentially a taste of things to come from major US airlines as the cost of oil soars above $100 a barrel.
Airlines have been charging hundreds more for tickets as the conflict disrupts global energy supplies, since fuel is typically airlines’ biggest cost along with labor – but JetBlue’s announcement appeared to mark the first sign that carriers could start passing along higher costs in the form of flight add-ons.
“As we experience rising operating costs, we regularly evaluate how to manage those costs while keeping base fares competitive and continuing to invest in the experience our customers value,” a JetBlue spokesperson told The Post in a statement.
“Adjusting fees for optional services used by select customers, such as checked baggage, allows us to continue offering more competitive fares while delivering the onboard experience our customers love, including complimentary snacks and drinks, unlimited, high-speed Wi-Fi and seatback entertainment screens.”
JetBlue’s spokesperson did not specifically address the change in baggage fees.
However, the airline’s website on Monday showed a checked bag fee of $49 on domestic flights for passengers in the lowest loyalty tier who check in within 24 hours of departure. If the bag is not added before check-in, then the fee is $54.
That’s a roughly $4 increase from 2024, the last time JetBlue – alongside United Airlines, American Airlines and Alaska Air – hiked its checked luggage fees to offset higher fuel costs and wages.
Southwest Airlines, American Airlines and Alaska Air did not immediately respond to The Post’s inquiries about whether they are also planning to raise checked bag fees. Delta and United declined to comment.
Jet fuel prices for Chicago, Houston, Los Angeles and New York averaged $4.57 a gallon as of last Friday – up nearly 83% since the day before US-Israeli strikes on Iran began on Feb. 28, according to the Argus US Jet Fuel Index.
In a note earlier this month, United CEO Scott Kirby said the airline has “the time and the luxury” to ride out higher fuel prices as customers are continuing to purchase tickets at higher prices – with the past 10 weeks representing the 10 biggest revenue weeks in company history.
But he acknowledged that “it may be a challenge to continue passing through much of the increased fuel price if oil stays higher for longer,” since it would mean an extra $11 billion in annual expenses – $6 billion more than the company made in its best year ever.
At an investor conference earlier this month, major US airline executives similarly said customers are continuing to show strong demand even as prices skyrocket, according to the New York Times.
Fares are higher almost across the board, especially on last-minute flights that are typically purchased by business travelers, according to an analysis by Deutsche Bank.
The lowest prices for flights within 24 hours to Asia, Europe and beyond have hit $1,900 on average – a huge increase from the $830-to-$1,000 range that prevailed the day before the war started, according to Deutsche Bank.
Prices for domestic flights from one coast of the US to the other have risen by 16%, the analysis found. Part of the change is likely due to a seasonal rise in fares in March around spring break and warmer weather.
