United Airlines will increase checked bag fees to $50 starting Friday

United Airlines will increase checked bag fees by $10 to $50 for travelers who buy tickets starting Friday, the company confirmed to Fox Business on Thursday.

The increase, which the airline said marks the first increase in bag fees in two years, comes after JetBlue announced similar measures in late March.

Passengers flying within the US, Mexico, Canada and Latin America can expect a $10 increase on the first and second checked bags, while the fee for a third bag will increase by another $50.

The airline did not specify whether the price increase was related to higher jet fuel costs due to the recent war in Iran, which has drastically disrupted global oil markets. However, United CEO Scott Kirby warned in recent weeks that persistently higher jet fuel costs could put pressure on company revenues.

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“United will increase the first and second checked bag fees by $10 for customers traveling in the US, Mexico, Canada and Latin America, starting with tickets purchased on Friday, April 3,” the airline said.

Currently, tickets sold through April 2 list a prepaid bag fee of $35 for the first bag, $45 for the second and $150 for the third. Starting Friday, these fees will increase to $45, $55 and $200 respectively.

Likewise, bags paid for within 24 hours of travel currently cost $40 for the first bag, $50 for the second and $150 for the third. Starting Friday, these fees will increase to $50, $60 and $200 respectively.

“Customers in most markets will still enjoy a $5 discount if they pre-pay for their bags online 24 hours before their flight,” the airline said, referring to the first two bags.

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Travelers gather with their luggage in the international terminal at Los Angeles International Airport (LAX) on June 25, 2024 in Los Angeles, California. (Mario Tama/Getty Images)

The airline emphasized that eligible passengers – such as United Chase credit card holders, MileagePlus Premier members, active military members and travelers in premium cabins – can still check a bag for free.

Earlier in March, Kirby acknowledged the mounting pressure from higher jet fuel prices, noting that the higher costs could more than double the company’s most profitable year over the course of a year.

“The reality is that jet fuel prices have more than doubled in the last three weeks,” the CEO wrote in a memo to employees. “If prices were to remain at these levels, it would mean an additional $11 billion in annual costs for jet fuel alone. In perspective, in United’s best year ever, we earned less than $5 billion. That may sound scary, but the first good news is that demand, at least for now, remains the strongest we’ve ever seen. The 10 biggest sales weeks in our history have been the past 10 weeks.”

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United Airlines CEO Scott Kirby speaks to reporters after a joint press event on December 13, 2022. (LOGAN CYRUS/AFP via Getty Images/Getty Images)

Earlier this week, JetBlue Airways also increased checked bag fees for economy passengers, citing disruptions in global oil supplies due to the ongoing war in Iran. Under the new structure, the first checked bag now costs about $39 on non-peak days and about $49 during peak travel periods, an increase of about $4 to $9 from previous rates.

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When an airline raises fares, competitors often follow suit. However, there has been no additional indication from American Airlines, Delta Air Lines, Southwest Airlines or Frontier Airlines that they intend to take similar measures.

Fuel costs rose to a multi-year high after the US-Israeli conflict with Iran erupted on February 28, disrupting roughly 20% of the global oil supply that normally flows through the Strait of Hormuz.

Jet fuel in major U.S. markets averaged $4.88 per gallon on Thursday, up more than 95% from the day before the war began, according to Argus data. published by airlines for America.