Rising Costs for Passengers
Delta Air Lines is increasing its checked baggage fees, joining other U.S. carriers in raising prices as jet fuel costs rise. Fees for the first and second checked bags will increase by $10. Checking a third bag on domestic and short-haul international flights will now cost $50.
The new fee structure takes effect Wednesday. Delta stated that the change is part of its "ongoing review of pricing across its business." This marks the first time in two years that Delta has increased fees for checking bags domestically.
Free Baggage Exceptions
Delta SkyMiles Medallion club members can still check bags for free. First-class passengers and other eligible customers also maintain their free baggage allowance. Checked-bag rates on long-haul international flights remain unchanged.
Following Competitors
Delta follows United and JetBlue in raising bag check fees since the U.S. and Israel attacked Iran on February 28. Airlines are trying to offset higher fuel costs by raising airfares and adding fuel surcharges to ticket costs.
Jet Fuel Price Increases
The price of jet fuel was $209 a barrel for the week ending April 3. This price represents a 132% increase from last year's average, according to the International Air Transport Association.
Potential Added Fuel Costs
Deutsche Bank analysts estimate that U.S. airlines could face tens of billions of dollars in added fuel costs if the Strait of Hormuz remains closed. If jet fuel prices remain $2 per gallon higher for the entire year, airlines would have to boost their fares by roughly 17%, or $50, across the board to fully offset those costs, the investment bank estimates.
