Most travelers flying with United Airlines will pay more to check luggage beginning Friday, as the airline moves to raise checked-bag fees amid higher costs it links to jet fuel price pressures tied to the war in the Middle East. The change will increase the price for the first checked bag by $10 on eligible routes within the United States, Mexico, Canada and Latin America, United said.
United said the first piece of checked luggage will cost $45, while a second bag will cost $55. The airline also said travelers who check bags less than 24 hours before departure will pay an additional $5. United said it has raised bag fees only once in the past two years.
United framed the fee increase as part of broader cost management, pointing to rising jet fuel costs since the conflict began on Feb. 28. United CEO Scott Kirby told investors last month that those higher jet fuel costs had added roughly $400 million to operating costs, and the airline said Delta Air Lines and American Airlines reported similar figures to investors.
The airline attributed the fuel-cost pressures to disruptions to global oil supplies, particularly near the Strait of Hormuz, a narrow waterway where a fifth of the world’s oil typically passes. United said the resulting crude-oil volatility feeds through to jet fuel pricing because jet fuel is refined from crude oil, and it said fuel is typically the second biggest expense for airlines after labor.
United said the average price for a gallon of jet fuel in major U.S. hubs—Chicago, Houston, Los Angeles and New York—reached $4.88 on Thursday, up from $2.50 just before the war, according to Argus Media’s U.S. Jet Fuel Index. The airline said U.S. carriers face increasing pressure to find new revenue sources as fuel costs climb, with non-U.S. carriers already adding fuel surcharges or raising ticket prices.
United also said it is making additional pricing changes that extend a “pay for what you want” approach from economy to premium cabins. The airline said seats in premium cabins on long-haul international routes, transcontinental U.S. flights and certain Hawaii services will be divided into three fare types: a lowest-cost base fare, a standard middle option, and a flexible top tier that is fully refundable.
United said the new base fare carries the lowest upfront price but removes some extras that travelers often associate with premium tickets, including advance seat selection and refunds. It said the standard option restores common perks such as seat selection, extra checked bags and the ability to make itinerary changes, and it said the flexible tier includes those features and full refunds. United said it plans to introduce the fare structure in select markets this month and expand it across more routes later this year.