United Airlines (UAL) on Friday raised its baggage fee for checked luggage following JetBlue's (JBLU) decision earlier in the week to do the same, as higher fuel prices threaten to crimp profits.
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United's new baggage fee will be $30 for one checked bag, an increase from $25, for flights in North and Central America as well as the Caribbean.
"As we continue to make investments that make travel on United better, we are making adjustments to our checked bag fees in select markets - most of which have not been changed for the past eight years," said a United spokeswoman.
"These changes allow us to continue investing in the overall customer experience in today's marketplace. Customers with MileagePlus Premier status and customers who purchase their ticket with an eligible MileagePlus credit card will continue to receive complimentary checked luggage."
JetBlue on Monday raised the baggage fee for the first checked piece of luggage by $5 to $30. For a second one, the baggage fee is now $40, a $5 increase. The increases apply to the carrier's "Blue" fare class, which offers fewer amenities than higher-grade tickets.
The baggage-fee moves also follow plans by some airlines to pare back flight schedules as fuel costs rise. The flight-capacity cuts could limit the overall supply of flights, pushing ticket prices and profits higher.
United Airlines crept 0.6% higher in the stock market today. JetBlue lost 0.4%. Delta Air Lines (DAL) edged up 0.1%. American Airlines (AAL) rose 0.2%. Southwest Airlines (LUV) gained 0.8%.
Baggage Fee Rates At Other Airlines
For domestic flights, American Airlines charges $25 for the first checked bag. Delta charges the same for travel between the U.S. and Canada in main-cabin or basic economy fares.
When asked about whether it planned to raise baggage fees as well, a spokesman for American Airlines said: "We don't have any changes to announce."
Southwest doesn't charge a baggage fee for the first two pieces of checked luggage.
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The post Baggage Fee Goes Up At United Airlines Following JetBlue's Hike appeared first on Investor's Business Daily.
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