Several US airlines raise baggage fees due to higher oil costs associated with Iran war

Several major US airlines have raised their baggage fees in recent days, blaming ongoing volatility in oil markets caused by the US-Israeli war in Iran that has almost doubled jet fuel prices.On Tuesday, Delta followed the lead of United Airlines and JetBlue, which announced last week that they were hiking baggage prices because of the ongoing war.The move from Delta came on the same day that the company announced it expected to record a pre-tax profit of about $1bn in the quarter that will end in June.In a statement, a Delta spokesperson said the new fee structure would take effect on Wednesday. The cost of a first and second checked bag on most routes will increase by $10 to $45 and $55, respectively, while a third bag will cost $200, an additional $50.“These updates are part of Delta’s ongoing review of pricing across its business and reflect the impact of evolving global conditions and industry dynamics,” the spokesperson said.Delta did not immediately answer if the new rates were intended to be permanent, or would be reduced again when fuel prices retreat after the Iran war is settled.A press release from Delta on Tuesday acknowledged that the airline, like every other, has been wrestling with soaring jet fuel prices since the US joined Israel in military strikes on Iran starting in February. Iran responded by closing the Strait of Hormuz, through which about one-fifth of the world’s oil is transported.According to the industry advocacy group Airlines for America, the average price of a gallon of jet fuel in four major air hubs – Chicago, Houston, Los Angeles and New York – has increased from $2.50 on 27 February, the day before military action commenced, to $4.81 on Tuesday.In addition to rising fuel costs, several airlines are facing an increase in the amount of fuel their aircraft use because of extra miles required to avoid flying over the conflict zone.Even so, Delta said it still expected to declare an industry-leading $1bn profit by the end of the June quarter, and announced on Tuesday it broke its previous March-quarter record with $15.9bn in revenue.“Delta’s results underscore the power of our brand and the durability of our financial foundation,” Ed Bastian, Delta’s chief executive officer, said in a statement.“We delivered earnings that were more than 40% higher than last year, even with a significant increase in fuel costs and operational disruptions across the industry.”Bastian did not address Delta’s decision to increase baggage fees, which follows a parallel move by other major airlines in recent days.On 3 April, United raised the cost of first and second checked bags on most routes by $10 in what the airline said was its first increase in two years. A first bag now costs $45 if booked ahead of time, and $50 within 24 hours of travel; a second checked bag will cost $55 or $60 depending when it was booked.Some customers, including holders of airline-branded credit cards and qualifying members of loyalty programs, will continue to pay nothing, United said.Days earlier JetBlue, which operates a sliding scale of baggage fees depending on when tickets are booked, and if the flights are peak or non-peak, also said it was hiking baggage costs. Both airlines cited rising fuel costs as the reason.“While we recognize that fee increases are never ideal, we take careful consideration to ensure these changes are implemented only when necessary,” JetBlue said in a statement, reported by NBC News.Separately, numerous airlines have raised ticket prices to help mitigate the additional expense.Major international carriers including Qantas, Cathay Pacific and Thai Airways are among those that have imposed fuel surcharges, while British Airways is reportedly partnering with its main pilots’ union to offer financial incentives to pilots who reduce their aircraft’s fuel consumption.