United Airlines hikes checked bag fee by $14 as world fuel prices continue to climb

United Airlines has become the second US carrier in a week to increase its checked bag fee as the industry grapples with the surge in fuel costs.  

Leslie Josephs
CNBC
Australian supermarkets including Coles, Woolworths and Ritchies are facing supplier requests for price increases due to rising fuel costs and operational expenses.

United Airlines has hiked its checked bag fee by $US10, becoming the second US carrier in less than a week to raise the fee as the industry grapples with this year’s surge in fuel costs, airlines’ biggest expense after labor.

United’s new fee will be $US45 to check a first bag on most domestic itineraries if the traveller pays ahead of time and $US50 if they pay within 24 hours of their flight.

“United is raising first and second checked bag fees by $10 for customers travelling in the US, Mexico and Canada and Latin America beginning with tickets purchased Friday, April 3,” the carrier said.

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United last raised checked bag fees in 2024 and, like other carriers, is trying to cover the recent surge in jet fuel costs.

Fuel prices for Chicago, Houston, Los Angeles and New York averaged $US4.56 a gallon on Wednesday, up more than 82 per cent since the US and Israel attacked Iran on Feb 28, according to data from Argus published by industry group Airlines for America.

JetBlue Airways on Monday hiked its checked bag fees at least $US4 per bag — and up to $US9 per bag, depending on when a customer’s travel is booked — CNBC first reported.

Competitors often follow suit with such fee increases. There are loopholes, however. Airline credit cards often give customers a free checked bag when they’re on domestic itineraries in coach and it usually comes as a perk with elite frequent flyer status. Also, first-class seats generally include a free checked bag.

“United Chase credit card holders, MileagePlus Premier members, active military members and customers travelling in premium cabins can still check a bag for free, and customers in most markets will still enjoy a $US5 discount if they prepay for their bags online 24 hours before their flight,” United said.

Higher fuel is showing up at gas stations and other sectors, too. Amazon is adding a 3.5 per cent “fuel and logistics-related surcharge” to fees it collects from third-party sellers who use its fulfillment services, CNBC reported earlier.

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