American Airlines, Alaska Air join others in raising baggage fees as fuel costs climb

American Airlines and Alaska Air have increased checked baggage fees, citing rising jet fuel costs linked to tensions in the Middle East. The move comes as airlines respond to higher operating expenses driven by disruptions in global oil supply routes.

Jet fuel prices have risen sharply in recent months. According to the International Air Transport Association, prices that averaged between $85 and $90 per barrel in February have increased to around $209 per barrel globally. The surge is linked to disruptions in shipping through the Strait of Hormuz, a key route that carries about one-fifth of global oil flows.

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American Airlines said it has raised fees by $10 each for the first and second checked bags on domestic and short-haul international flights. The new charges came into effect on Thursday. Alaska Air also announced an increase, raising fees by $5 for the first checked bag and $10 for the second on its North American routes, including flights operated by its unit Hawaiian Airlines.

Both airlines have increased the fee for a third checked bag to $200, marking a $50 rise. American Airlines had already applied similar pricing for certain routes, including Canada.

American Airlines has also announced further changes for passengers booking basic economy tickets. From May 18, such travelers will pay an additional $5 for checked bags. They will also be charged for seat selection and will not be eligible for complimentary system-wide upgrades on flights.

Alaska Air said its loyalty programmes, Huakaʻi and Club 49, will continue to offer checked baggage benefits for intra-state travel within Hawaii and Alaska, with no changes announced.

Passengers flying in premium cabins will continue to receive free checked baggage on both domestic and international flights, American Airlines said.

Airlines raise fares and revise pricing models amid conflict
Airlines in the United States and other markets have started embedding higher operating costs into ticket prices and add-on fees as fuel prices rise. Delta, United, Southwest Airlines and JetBlue have all increased checked baggage fees in recent weeks.

United Airlines has also revised its pricing approach in premium cabins. The carrier said last week that it is bringing the “pay for what you want” approach already standard in economy to its premium cabins, turning perks like advanced seat selection and fully refundable tickets into optional extras.

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International carriers have also adjusted charges. Hong Kong-based Cathay Pacific has increased fuel surcharges by about 34% across all routes. Air India on Monday added fees of up to $280 on some flights.

Other global airlines including Emirates, Lufthansa and KLM have revised fares or added fees to manage volatility in fuel prices.