Airlines are implementing additional charges and increasing baggage fees, leaving travelers wondering why. United Airlines, American Airlines, and JetBlue Airways are among the carriers that have raised the cost of checking bags this year. However, the amount passengers pay depends on when they purchase the service. These airlines charge higher fees for checking bags at the airport or close to departure compared to checking them online in advance.
The reason behind this strategy is to encourage customers to pay for their checked bags ahead of their flight. Airlines argue that this approach will free up employees at check-in areas and allow travelers to reach their gates faster. By incentivizing passengers to complete the transaction in advance, it makes the process easier for both the customers and the airlines. Frontier Airlines CEO Barry Biffle explains that it also benefits those who genuinely need assistance at the airport.
The different fee tiers for baggage charges are not unique to these major airlines. Ultra-low-cost carriers have been utilizing this approach for luggage fees. Frontier Airlines CEO Barry Biffle claims that most travelers pay the fee in advance, as it is more convenient for them. Additionally, the prices can vary depending on demand and other factors.
United Airlines was one of the first carriers to charge more for checked bags at the airport in 2020. Recently, they announced an increase in bag fees by $5 for most North American flights. Customers who prepay online at least 24 hours before their flight will pay $35, while those who pay at the airport or within 24 hours of departure will be charged $40. The cost for a second checked bag is $50 or $45 when prepaid at least 24 hours in advance.
The primary reason airlines are raising baggage fees is that they are a significant source of revenue. In the first nine months of 2023, U.S. airlines generated over $5.4 billion from baggage fees alone, representing a 25% increase compared to the same period in 2019. Carriers argue that higher costs, such as labor and fuel, necessitate these fee hikes. JetBlue, for example, stated that adjusting fees for services used by specific customers allows them to keep base fares low and provide free amenities like seatback TVs and high-speed Wi-Fi for everyone.
Southwest Airlines stands out among the major U.S. carriers as they allow customers to check two bags for free. Chief Operating Officer Andrew Watterson emphasizes that this policy will remain unchanged. He explains that it does not cost the airline $35 or $40 to handle a bag, highlighting the benefits of checked bags for efficiency and customer satisfaction. Southwest aims to turn aircraft around for the next flight in just 45 minutes, and checked bags contribute to smoother operations.
In conclusion, airlines are implementing additional charges and increasing baggage fees to boost revenue and cover rising expenses. Encouraging customers to pay for checked bags in advance helps streamline the check-in process and allows airlines to allocate resources more efficiently. While some carriers adopt a multi-tiered fee structure, Southwest Airlines stands apart by offering two free checked bags. Ultimately, the goal for airlines is to strike a balance between profitability and customer satisfaction.
