Passengers arrived at Chicago O’Hare International Airport for their flight on March 16, 2021.
Scott Olson | Getty Images News | Getty Images
Airlines are raising checked baggage prices again. However, how much it will cost you depends on when you pay for the service.
United Airlines, American airlines and JetBlue Airways is one of the operators that has raised prices price Check your bags this year. They each charge customers more if they check their bags at the airport or closer to departure time than if they check their bags online in advance.
Airlines are encouraging passengers to pay to check bags before their flights, which they believe will free up staff in check-in areas and get passengers to their gates faster.
Earlier this week, American Airlines raised its checked bag fees for the first time in more than five years, adopting a two-tier strategy already employed by United, JetBlue and several budget carriers.
American Airlines said Tuesday that economy class passengers on domestic flights will pay $35 to check their first bag if they book the service in advance online, or $40 if they purchase the service at the airport. American Airlines previously charged $30 for both services.
There are exemptions. Passengers who hold certain airline or other rewards credit cards, travel in premium cabins, or have elite frequent flyer status can usually check at least one bag for free on domestic or short-haul international flights.
Why is it cheaper to check luggage in advance?
“This allows our team members to spend more time with customers who need additional travel assistance,” an American Airlines spokesperson told CNBC.
American Airlines also said this week it would lower fees for slightly overweight bags, forcing some travelers to remove items from bags at the airport at the last minute to meet the threshold.
Different fee tiers are a method already used by ultra-low-cost airlines to charge baggage fees.
“It incentivizes people to close the deal. It’s easier for them and, honestly, it’s easier for us,” said Frontier Airlines CEO Barry Biffle. “There are people in need of legitimate assistance” at the airport.
Prices will vary based on demand and other factors. Biffle said most travelers who add luggage pay the fee in advance.
United began charging passengers higher fees for checked bags at airports for the first time in 2020. On Friday, the airline said it would increase baggage fees on most North American flights by $5 to $35 if passengers prepay online at least 24 hours before departure. or $40, pre-order starting February 24th. The second checked bag fee is $50 or $45 if booked at least 24 hours in advance.
Why do airlines raise baggage fees?
Baggage fees are a significant amount of money for airlines. The latest data from the U.S. Department of Transportation shows that in the first nine months of 2023, American Airlines’ baggage fee revenue exceeded US$5.4 billion, an increase of more than 25% compared with the same period in 2019.
Airlines argue that higher costs, e.g. Labor and fuel are their biggest expenses, which means they have to raise baggage fees.
“While we don’t like increasing fees, this is a step we are taking to return the company to profitability and recoup increased baggage transportation costs,” JetBlue said in a statement about the latest price increase. “By adjusting only certain By reducing the cost of add-on services that some customers use, we can keep base fares low and ensure that customer-favorite services like seat-back TVs and high-speed Wi-Fi are free for everyone.”
Ground staff load luggage onto a Southwest Airlines Boeing 737 aircraft on the tarmac at John Wayne Airport in Santa Ana, California.
Patrick T. Fallon Bloomberg | Getty Images
Southwest Airlines It is an outlier among the major U.S. airlines. It allows customers to check two bags for free. “That’s here to stay,” Chief Operating Officer Andrew Watterson said.
“It doesn’t cost $35, $40 to move a bag,” Watson said in an interview. Passengers on many major airlines will bring carry-on bags to avoid baggage fees, but Watson said that could slow down operations, which is a big deal for Southwest, which he said tries to get planes within 45 minutes. Return to the next flight, even shorter for some smaller Boeing aircraft.
“It does make the operation smoother and people can check it instead of opening it,” he said. “Overall, we think the benefits are a combination of some efficiencies and customer repeatability. The repeat business cannot be overstated. When you treat customers well and provide them with fair policies, they will come back again and again.”
Don’t miss these stories from CNBC PRO:
About The Author
