United Airlines announced a $10 increase in checked baggage fees effective Friday, citing surging jet fuel costs exacerbated by the ongoing conflict in the Middle East. Domestic and international travelers will now pay $45 for their first checked bag and $55 for their second, marking the first fee hike in two years. Certain groups, including co-branded credit card holders, loyalty program members, active military personnel, and premium cabin passengers, will still receive a free first checked bag.
Fuel Costs Skyrocket as Conflict Disrupts Oil Supply
The war in the Middle East has severely disrupted global oil supplies, particularly near the Strait of Hormuz, a critical chokepoint for global oil transport. According to Argus Media, jet fuel prices in major hubs like Chicago, Houston, Los Angeles, and New York have nearly doubled, reaching $4.88 per gallon compared to $2.50 before the conflict began on February 28. United CEO Scott Kirby noted that increased fuel costs have added approximately $400 million to operating expenses.
Charging more for optional services used by select customers helps keep base fares competitive, according to JetBlue, which also raised baggage fees earlier this week.
Analysts predict U.S. airlines will continue passing higher fuel costs onto travelers through increased fees or ticket prices, as domestic carriers typically avoid explicit fuel surcharges. Meanwhile, international airlines have already implemented such surcharges to offset rising expenses.