Increased Airport Baggage Fees

Airlines, including United Airlines, American Airlines, and JetBlue Airways, have increased the cost of checking baggage. A new tiered pricing system charges passengers more if they choose to check their bags at the airport rather than paying online in advance. The airlines hope that this change will streamline the check-in processes, helping travelers to arrive at their gates more quickly.

American Airlines, which hadn’t raised its checked bag fees in over five years, now charges $35 for the first checked bag if paid for online ahead of time, and $40 at the airport. The airlines justify these increases by highlighting the operational efficiencies and improved customer service resulting from pre-paid baggage fees.

Customers who have specific rewards credit cards or elite frequent flyer status are exempt from these fees for at least one checked bag.

Airlines attribute the need for these fee hikes to rising labor and fuel costs. Southwest Airlines remains an exception, continuing to allow two free checked bags, emphasizing customer satisfaction and operational efficiency as core to its business model.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]businessdistrict.com