US airlines increase checked baggage fees amid rising costs: Report

United Airlines has joined American Airlines and JetBlue Airways in hiking checked baggage fees for North American travellers, reflecting the broader trend among major US carriers.

As per a Reuters report, United passengers flying within the US will face increased fees for checked baggage beginning from February 24, with prices rising for both first and second bags, whether paid for in advance or at the airport.

The move comes as US airlines grapple with escalating costs, particularly in maintenance and labour contracts, while facing weakened pricing power in the domestic market.

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Baggage fees have become a significant revenue stream for airlines, with US carriers collecting nearly $6.8 billion in such fees in 2022 and $5.5 billion in just the first nine months of 2023.

According to JetBlue Airways, the decision to raise baggage prices is a response to increased operational costs, including higher wages, fuel expenses, and other inflationary pressures.

The airline noted that adjusting fees was necessary to offset these rising costs and restore profitability, particularly in the wake of ongoing financial challenges pushed by the COVID-19 pandemic .

American Airlines recently raised fees for first checked bags, mirroring the industry trend.

The airline now charges $35 if booked in advance online or $40 at the airport.

Senator Richard Blumenthal, chair of the Permanent Subcommittee on Investigations, expressed concerns over airline fees, including those for baggage, seat selection, and ticket changes.

The US Transportation Department has proposed regulations requiring airlines to disclose fees for baggage, ticket changes, and family seating upfront, aiming to enhance transparency for consumers.

These proposals come amid ongoing debates over the regulation of airline fees and efforts to protect consumer interests within the aviation industry.

In 2018, Congress faced criticism for dropping plans to mandate "reasonable and proportional" baggage and change fees, succumbing to pressure from the airline industry.

However, ongoing scrutiny and proposed regulations suggest a renewed focus on addressing consumer concerns and ensuring accountability within the airline industry.