Delta Air Lines said it will raise checked baggage fees for many passengers beginning Wednesday, as the airline industry grapples with higher jet fuel costs tied to the war in the Middle East. The change sets new, higher prices for checking bags on most domestic and short-haul international trips, turning a larger share of travel costs into an add-on for customers who bring luggage.
The new fee structure applies to most domestic and short-haul international passengers, Delta said. Beginning Wednesday, travelers will pay $45 to check one bag, $55 for a second and $200 for a third, the company said—an increase of $10 on each of the first two bags and $50 on the third.
Delta linked the move to evolving conditions in global markets and said it reflects a broader review of pricing across its business. In a statement, the airline said the updates are part of that ongoing pricing review and reflect the impact of changing global conditions and industry dynamics.
The fees come after similar announcements by other U.S. carriers, with United and JetBlue raising baggage fees last week. MSI previously reported that JetBlue raised checked bag fees as the Iran war boosted fuel costs in a related story.
Delta said complimentary checked bags will remain available to customers in premium cabins, active-duty military personnel, eligible co-branded credit card holders and members of certain loyalty tiers. The airline said fees for long-haul international flights are not affected by the change.
Delta’s announcement also arrives as the airline sector prepares for first-quarter earnings, with Delta scheduled to report on Wednesday and “kicking off” the start of U.S. airline earnings season, a period that could offer travelers an early gauge of how rising jet fuel prices may affect operations and pricing beyond tickets.
The airline’s chief executive, Ed Bastian, told investors last month that higher jet fuel prices had already added about $400 million to Delta’s operating expenses since Feb. 28, when the conflict began, and executives at United and American Airlines reported similar figures. Fuel typically ranks as the second-largest airline expense after labor, according to the report.
Jet fuel pricing has been volatile as fighting near the Strait of Hormuz disrupts supplies, and a threat to the narrow chokepoint has helped push up jet fuel costs, the report said. The energy market intelligence company Argus Media said the average price for a gallon of jet fuel in Chicago, Houston, Los Angeles and New York was $4.81 on Tuesday, up from $2.50 the day before the war started, based on its U.S. Jet Fuel Index.
Analysts expect airlines to lean more heavily on ancillary fees to offset higher expenses as jet fuel costs rise. At the same time, the report said many non-U.S. carriers have responded by adding or increasing fuel surcharges.