Delta Air Lines and Southwest Airlines announced Tuesday that they will increase fees for checked luggage as carriers attempt to manage soaring jet fuel expenses. The price hikes come amid escalating geopolitical tensions in the Middle East that have disrupted the Strait of Hormuz, a critical oil shipping route, leading to higher global operating costs and squeezed profit margins for the aviation sector.
According to the International Air Transport Association, jet fuel prices have climbed dramatically, rising from an average of $85 to $90 per barrel in February to approximately $209 per barrel globally. This surge follows the onset of conflict involving Iran.
Both airlines stated that the cost for the first and second checked bags on new bookings will increase by $10. Under the new pricing structure, the first bag will cost $45, while the second bag will cost $55. Delta indicated that these changes apply to domestic flights and select short-haul international routes. For a third checked bag, Delta is raising the fee by $50, bringing the total cost to $200.
The fee adjustments will take effect for bookings made on or after Wednesday for Delta passengers and on or after Thursday for Southwest customers. This move marks the first increase in Delta’s domestic baggage fees in two years. The decision follows similar actions taken by United Airlines and JetBlue Airways.
Delta noted that it has a partial buffer against these costs due to a subsidiary-owned refinery in Pennsylvania. This facility has a daily capacity of about 190,000 barrels and supplies nearly three-quarters of the airline’s fuel needs. However, the company remains exposed to fluctuations in crude oil prices.
