JetBlue hikes baggage fees to offset higher fuel costs sparked by Iran war
JetBlue is increasing its baggage fees in response to higher fuel costs caused by the conflict in Iran – a potential indication of what may be coming from major US airlines as oil prices surpass $100 a barrel.
Airlines have been raising ticket prices significantly as the conflict disrupts global energy supplies, given that fuel is a major expense for airlines along with labor. JetBlue’s announcement seems to be the first sign that airlines are considering passing on higher costs to consumers through additional fees.
“As we face rising operating costs, we regularly assess how to manage those costs while keeping base fares competitive and continuing to invest in the customer experience,” 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,” the JetBlue spokesperson added.
JetBlue’s spokesperson did not specifically address the change in baggage fees.
However, the airline’s website on Monday indicated 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.
This is around a $4 increase from 2024, the last time JetBlue – along with United Airlines, American Airlines, and Alaska Air – raised its checked luggage fees to counter 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 – nearly an 83% increase since the day before US-Israeli strikes on Iran began on Feb. 28, as reported by the Argus US Jet Fuel Index.
In a previous note, United CEO Scott Kirby mentioned that the airline is currently able to handle higher fuel prices as customers are still purchasing tickets at increased prices. However, if oil prices remain high, it may become challenging to pass on the full increase in fuel costs, which would result in an additional $11 billion in annual expenses – $6 billion more than the company’s best year ever.
Baggage Costs Fees Fuel higher hikes Iran JetBlue Offset Sparked war
