Travelers arrive to fly at O'Hare International Airport in Chicago on March 16, 2021.
Scott Olson | Getty Images News | fake images
Airlines are raising their prices to check a bag, again. However, how much it will cost you will depend on when you pay for the service.
united airlines, american airlines and JetBlue Airways They are among the carriers that have raised the price to check bags this year. Each of them charges customers more if they check their bags at the airport or near their departure compared to paying to check a bag online in advance.
Airlines are encouraging customers to pay to check their bags before their flight, an approach that airlines say will free up employees in check-in areas and get travelers to their gates faster.
Earlier this week, American Airlines raised its checked baggage fees for the first time in more than five years, adopting the two-tier strategy already in place by United, JetBlue and several low-cost airlines.
American Airlines customers traveling in economy class will pay $35 to check a first bag on domestic flights if the service is booked online in advance, or $40 if they purchase the option at the airport, the airline said Tuesday. American Airlines previously charged $30 for either service.
There are exemptions. Customers who have certain airline or other credit cards, who travel in premium class, or have elite frequent flyer status can generally check at least one bag for free on domestic or short international flights.
Why does it cost less to check a suitcase in advance?
“It allows our team members to spend more time with customers who need additional assistance on their trip,” an American Airlines spokeswoman told CNBC.
American also said this week that it is reducing fees for slightly overweight bags, which used to force some travelers to remove items from their bags at the last minute at the airport to meet the threshold.
Different fee tiers are an approach that ultra-low-cost airlines already had for baggage fees.
“It incentivizes people to cancel the transaction. It's easier for them and, honestly, it's easier for us,” he said. Border Airlines CEO Barry Biffle. “There are people who need legitimate assistance” at the airport.
Prices differ depending on demand and other factors. Most travelers who add luggage pay the fee in advance, Biffle said.
United began charging customers more to pay for checked bags at the airport in 2020. On Friday, the airline said it would increase baggage fees by $5 for most flights in North America to $35 if customers pay for Advance online at least 24 hours before your flight. or $40 otherwise, from reservations made on February 24. A second checked bag will cost $50, or $45 with at least 24 hours notice.
Why do airlines increase baggage fees?
Baggage fees are a big source of revenue for airlines. In the first nine months of 2023, U.S. airlines collected more than $5.4 billion in baggage fees, more than 25% more than the same period in 2019, according to the latest data from the Department of Transportation.
Airlines have argued that higher costs such as labor and fuel, their biggest expenses, mean they have had to raise baggage fees.
“While we don't like raising fares, it is a step we are taking to return our business to profitability and cover the increased costs of carrying bags,” JetBlue said in a statement about its latest increases. “By adjusting rates for additional services that only certain customers use, we can keep base rates low and ensure that customer favorites, like seatback TVs and high-speed Wi-Fi, remain free for all”.
Ground operations employees load luggage onto a Southwest Airlines Boeing 737 aircraft on the tarmac at John Wayne Airport in Santa Ana, California.
Patricio T. Fallon | Bloomberg | fake images
Southwest Airlines It is an outlier among large American airlines. Allows customers to check two bags for free. “That's how things will continue,” said COO Andrew Watterson.
“It doesn't cost us $35, $40… to handle a bag,” Watterson said in an interview. Many major airline customers bring carry-on bags to avoid baggage fees, but Watterson said that could slow down the operation, a big problem for Southwest, which he said is trying to turn the plane around for the next flight in 45 minutes. , or even less. for some of its smaller Boeing aircraft.
“It simplifies the operation so people can check it instead of provoking it,” he said. “Overall, we think the benefit is a combination of some efficiencies but also customers coming back to us. You can't underestimate the business of a repeat customer. And when you treat your customers well, you give them a fair policy, they They come back again and again.”
Don't miss these CNBC PRO stories:
