Third Order Effects Begin: U.S. Airlines Hike Bag Fees As Jet Fuel Prices Spike
The New York Harbor jet fuel benchmark has doubled in just five weeks as the aviation fuel crisis spreads from airport to airport worldwide following ongoing disruptions at the Hormuz chokepoint. The third-order effects of that energy shock began to materialize this past week, with major U.S. airlines raising checked-bag fees to offset soaring fuel costs. United Airlines and JetBlue Airways, two major U.S. carriers, raised checked-baggage fees for domestic travel this week as they begin to figure out ways to address the impact of surging jet fuel prices without causing ticket sticker shock for customers. On Monday, JetBlue raised first-checked-bag prices by $4 to $9, depending on the timing and travel date. Later in the week, United raised its checked-bag fee by $10 for new bookings, pushing some domestic economy bag fees as high as $50. Both airlines said the increased fees are uncommon, with JetBlue citing higher operating costs and United noting it was the first increase in two years. “United is raising first and second checked bag fees by $10 for customers …








