Travelers arrive for flights at O'Hare International Airport in Chicago on March 16, 2021.
Scott Olson | Getty Images News | Getty Images
Airlines are raising their prices for checked bags — again. However, how much it will cost depends on when you pay for the service.
United Airlines, American Airlines And JetBlue Airlines It is among the carriers that raised bag check prices this year. Each of them charges customers more if they check their bags at the airport or near their departure than if they pay to check bags online in advance.
Airlines are encouraging customers to pay to check their bags before their flight, an approach that airlines say will free up staff in check-in areas and get travelers to their gates faster.
Earlier this week, American Airlines raised checked bag fees for the first time in more than five years and adopted a two-tier strategy already followed by United, JetBlue and many budget airlines.
American Airlines customers traveling by coach will pay $35 to check the first bag for domestic flights if the service is booked online in advance, or $40 if they purchase the option at the airport, the airline said Tuesday. American Airlines previously charged $30 for either service.
There are exceptions. Customers who have certain airline credit cards or other rewards, fly first class or have elite frequent flyer status can generally check at least one bag free of charge on short domestic or international flights.
Why is it less expensive to check a bag in advance?
“It allows our team members to spend more time with customers who need additional assistance with their travel journey,” an American Airlines spokeswoman told CNBC.
American also said this week that it would slightly reduce its overweight bag fees, which have been forcing some travelers to remove items from their bags at the last minute at the airport to meet the minimum.
The different fee levels are an approach that low-cost airlines are already taking when it comes to baggage fees.
“It motivates people to close the deal. It's easier for them, and frankly, it's easier for us,” he said. Frontier Airlines CEO Barry Biffle. “There are people who need legitimate assistance” at the airport.
Prices vary depending on demand and other factors. Most travelers who add luggage pay the fee in advance, Biffle said.
United first began charging customers extra for paying for checked bags at the airport in 2020. On Friday, the carrier said it had raised the bag fee by $5 for most flights in North America to $35 if customers prepaid online. At least 24 hours before their flight. Or $40 otherwise, starting with reservations made February 24. The cost of a second checked bag will be $50, or $45 at least 24 hours in advance.
Why are airlines raising baggage fees?
Baggage fees are a major source of income for airlines. In the first nine months of 2023, U.S. airlines brought in more than $5.4 billion in baggage fees, up more than 25% from the same period in 2019, according to the latest Department of Transportation data.
Airlines say high costs such as labor and fuel, their biggest expenses, have meant they have had to raise bag fees.
“Although we do not like the fee increase, it is a step we are taking to return our company to profitability and cover the increased costs of carrying bags,” JetBlue said in a statement about its recent increases. “By adjusting charges for additional services that only some customers use, we can keep base prices low and ensure that customer favorites like seatback TVs and high-speed Wi-Fi remain free for everyone.”
Ground operations personnel load luggage onto a Southwest Airlines Boeing 737 on the tarmac at John Wayne Airport in Santa Ana, California.
Patrick T. Fallon | Bloomberg | Getty Images
Southwest Airlines It is considered an outlier among the major American airlines. Customers are allowed to check two bags for free. “That's the way it's going to stay,” said Andrew Watterson, director of operations.
“It doesn't cost us $35 or $40 to handle a bag,” Watterson said in an interview. Many customers on major airlines bring carry-on bags to avoid bag fees, but Watterson said that could slow down the process, which is important for Southwest, which he said tries to turn the plane over to the next flight in 45 minutes, and even less for some of its smaller planes. Boeing.
“It makes the process easier for people to check it out rather than operate it,” he said. “Overall, we think the benefit is a combination of some efficiencies but also customers coming back to us. Repeat customer business can't be overstated. And when you treat your customers well, and give them a fair policy, they come back again and again.”
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