Delta Joins United, JetBlue to Boost US Baggage Fees at $ 30

WASHINGTON (Reuters) – Delta Airlines Inc., the second-largest US airline, joined other major airlines on Wednesday to boost domestic baggage fees from $ 5 per bag to $ 30.

The price increase follows similar actions by United Continental Holdings Inc. and JetBlue Airways Corp in August, and Congress plans to require the US Department of Transportation to assess whether baggage and ticket fees are "reasonable and proportionate". .

Delta, United and JetBlue currently charge $ 30 for the first piece of baggage on the domestic lines, up from $ 25 and $ 40 for the second, up from $ 35.

Airlines have cited rising costs as a concern, with high fuel prices and moguls in terms of wages and benefits for pilots, flight attendants and mechanics, resulting in increased expenses for the airline. 39; operation.

US airline revenues from baggage changes and bookings increased from $ 5.7 billion in 2010 to $ 7.5 billion in 2017. Other fees are not reported to regulators.

United executive chief Oscar Munoz defended price increases last week, saying these are the first increases in eight years. Munoz said the airline would use some of the additional costs to reinvest in the operations.

Southwest Airlines Co, US airline # 4, said it would continue to allow passengers to check two pieces of luggage and did not charge a booking modification fee.

The US House of Representatives and Senate negotiators have discussed at length a compromise bill to re-authorize the Federal Aviation Administration, which could be unveiled this week. Congress must meet the deadline of September 30 to extend the FAA's operating authority.

In May, the US Department of Transportation opposed the provisions of a bill approved by the Senate Commerce Committee that would require new rules to prohibit unreasonable air transportation costs.

Doug Parker, chief executive of American Airlines Group Inc., told reporters last week that if Congress decided to regulate change fees, the first US airline would likely stop selling non-refundable tickets that could be replaced by a new one. new flight. "That's where I think we'll end," he said.

American did not follow its competitors by increasing baggage fees.

Airlines for America, an airline group, said the fee provision would result in "government-imposed price controls" and should be rejected.

A Senate assistant involved in the talks predicted that the royalties provision would not be included in the draft compromise, but would include other consumer protection measures, such as requiring the transport department to set minimum standards. for the size of the seats.