US Airlines Hike Bag Fees as Jet Fuel Prices Spike
Third order effects of Middle East war have begun
TL;DR
- New York Harbor jet fuel benchmark has doubled in five weeks.
- Major U.S. airlines United and JetBlue have raised checked baggage fees.
- United's domestic economy bag fees can now reach $50.
- Airlines are using baggage fee increases to offset rising fuel costs.
- Analysts suggest baggage fee hikes are a better short-term option than aggressive ticket price increases.
- Some warn of potential ticket price increases of up to 20% or capacity reductions.
- The S&P 500 Airlines Index has shown a technical breakdown amid rising fuel costs.