United Airlines: US airlines raise checked bag fees to $45 as travel costs climb and passengers face new normal charges
Even if oil prices fall later, it seems unlikely that bag fees will drop. Travel expert Brett Snyder said baggage fees are unlikely to decrease and will only increase unless the entire airline pricing model changes. He also explained that airlines had previously waived change and cancellation fees during the Covid-19 outbreak, but these fees have not yet returned.
Why are airlines increasing baggage fees?
Airlines prefer to increase baggage fees instead of ticket prices because customers mostly focus on the ticket price when booking. USA Today quoted Vicki Morwitz as saying that people only consider the visible ticket price, not the total cost of the trip. He added that travelers often think they’ll save money later, so they ignore extra costs like baggage fees. Airlines also use situations such as rising oil prices as a “good excuse” to increase fares without upsetting customers too much. Even if companies want more profits, people think price increases would be fairer if they said costs were rising, Morwitz said.
History of checked baggage fees
Checked baggage fees often increase during economic crises or shocks. About 20 years ago, during the Great Recession, airlines first started charging for the second checked bag. American Airlines became the first company to impose a fee for checked baggage. Airlines realized that customers were ignoring baggage fees when purchasing tickets, and it became an easy way to make more money.
In 2008, high oil prices were the main reason why airlines introduced baggage fees for the first time. Today, with oil prices rising again, airlines are using the same strategy again. Experts say airlines typically don’t eliminate fees once they start making profits. According to the Bureau of Transportation Statistics, US airlines will earn about $7.3 billion from baggage fees in 2024, USA Today reported.
Impact on passengers and cabin space
Higher baggage fees may push some people to carry luggage instead of checking it, but the impact will be small. As USA Today noted, if someone agrees to pay $35 sooner, they’ll probably still pay $45, so this increase won’t change behavior much, Brett Snyder said. Some travelers may choose to get an airline credit card to avoid paying fees. More passengers now accept baggage fees as a normal part of flying.
How to avoid paying baggage fees?
You can avoid the fees by purchasing a ticket that includes an already checked baggage. You can also get an airline credit card, which usually gives free checked luggage. Frequent flyers with elite status often get free checked bags as a benefit. If you do not have these options, you can try traveling with only your hand luggage. But if you’re moving large items (like sporting equipment), avoiding the fee can be very difficult. In general, if none of these options work, travelers should be prepared to pay higher fees. Baggage fees are on the rise, airlines are making billions on them, and this extra cost has become the new normal for travelers, according to USA Today.
FAQ
Q1. Why are US airlines increasing checked baggage fees?
US airlines are increasing baggage fees due to increasing operating costs, especially fuel prices, and because they want to generate extra revenue without increasing ticket prices.
Q2. How can passengers avoid paying high baggage fees?
Passengers can avoid baggage fees by using airline credit cards, choosing baggage-inclusive fare packages, or gaining frequent flyer status.
