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Get ready to pay even more the next time you travel with checked luggage.
Just before Labor Day, JetBlue and United Airlines increased the travel cost for most travelers to $ 30 from $ 25. Delta Air Lines followed suit on Wednesday, and American Airlines announced Thursday it was increasing its shipping costs.
The airlines continue to charge the much-maligned transportation costs as a way to protect their bottom line from rising fuel and labor costs.
"Airlines currently face a cost two times higher than revenue," said Samuel Engel, senior vice president of aviation advisory group ICF. As a result, he said, airlines are looking for ways to increase revenues that encourage their competitors to follow their example.
"Baggage fees are an easy target, and the good thing about baggage fees is that it's a way to isolate that increase on your least loyal customer," Mr. Engel said. "Airlines have created exceptions to baggage fees for their frequent fly-in passengers, so the pool of people who make up the largest airline revenues will not see that increase."
Mr. Engel also noted that transportation costs were a good way to get passengers to pay more without raising fares. Lower fares attract more attention on flight search engines like Kayak and Expedia, and shipping costs are not a factor in the posted price.
In a statement, United emphasized that the higher fees, which only affect flights in the Caribbean and in North and Central America, were a way to maintain its current level of service.
"These changes allow us to continue to invest in the overall customer experience in today's market," said the airline.
JetBlue also defended its new awards. In a statement, the airline said, "In terms of good deals, we regularly review and adjust our ancillary rates to ensure a healthy business so we can continue to offer the best customer experience of any US airline. his fees.
Airlines remain profitable, but rising fuel prices and labor costs are tightening their margins.
"The increase in fuel prices from the first half of last year to the first half of this year was 31%, which represents an increase of about 7.5% in the costs of fuel. total exploitation, "said Mr Engel. "It's really big."
The increase in bag fees, he said, is not the only way for airlines to cope with higher costs. United also announced last month that it would introduce a fee for economic seats closer to the front of the plane.
Southwest stands out by always allowing passengers to check two free bags. And Alaska Airlines has until now kept its fee at $ 25 for the first checked baggage.
While higher fees are sure to frustrate many travelers, Engel said he has seen a definite advantage for carriers and their customers. While it expects airlines to see tight margins for a while, major operators are in a much better financial position than a decade ago. American and United both introduced bag fees in 2008. They charged $ 15 for the first checked bag.
"We will not go back to the dark days of the mid-2000s," he said.
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