Delta joins growing list of US airlines raising checked bag fees as jet fuel costs soar

Delta Air Lines announced Tuesday that it is raising checked baggage fees, part of a broader wave of United States carriers responding to higher jet fuel prices tied to the war in the Middle East.

Beginning Wednesday, most domestic and short-haul international passengers will pay $45 to check one bag, $55 for a second and $200 for a third, according to Delta.

That’s an increase of $10 on each of the first two bags and $50 on the third.

The move follows similar announcements from United Airlines and JetBlue, both of which raised baggage fees last week.

“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 carrier said in a statement.

It marks Delta’s first increase to checked baggage fees on domestic routes in two years.

Delta said complimentary bags will still be available to customers in premium cabins, active-duty military personnel, eligible co-branded credit card holders and members of certain loyalty tiers.

Fees for long-haul international flights are not affected.

CEO Ed Bastian told investors last month that the jump in jet fuel prices had already added about $400 million to Delta’s operating expenses since the conflict began on February 28.

Executives at United and American Airlines reported similar figures.

Delta is scheduled to report its first-quarter earnings on Wednesday, kicking off the earnings season for US airlines, which could offer travellers an early gauge of how rising jet fuel prices may affect them.

Airlines around the world have been grappling with volatile oil markets as fighting near the Strait of Hormuz disrupts global supplies.

Roughly a fifth of the world’s oil typically passes through the narrow water way, and the threat to that chokepoint is pushing up the price of jet fuel, which is refined from crude.

Fuel typically ranks as the second-largest expense for airlines after labour.

The average price for a gallon of jet fuel in Chicago, Houston, Los Angeles and New York was $4.81 on Tuesday, up from $2.50 the day before the war started, according to Argus Media.

The energy market intelligence company’s US Jet Fuel Index tracks average prices across those major hubs.

In addition to raising ticket prices, analysts say US carriers are likely to lean more on ancillary fees to offset the higher expenses, while many non-US carriers are responding by adding or increasing fuel surcharges.

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