JetBlue tends to be a leader when it comes to starting trends to increase checked bag fees, so this will be something to keep an eye on…
In this post:
JetBlue tries to boost revenue with higher checked bag fees
Airlines are obviously in an incredibly tough spot at the moment. We’ve seen a massive increase in fuel costs, which is one of the biggest variable expenses that airlines have. If oil prices don’t decrease from these levels, even the world’s most profitable airlines will be losing money, while those airlines that were previously struggling may be in bankruptcy.
Effective immediately, JetBlue has increased checked bag fees. JetBlue has a rather complicated fee structure for checked bags, with both off-peak and peak pricing, plus different pricing based on whether you pay for the bag 24 hours or more in advance. With these changes, off-peak pricing has increased by $4 per bag, while peak pricing has increased by $9 per bag.
During peak periods, a first checked bag will now cost $49 if paying more than 24 hours in advance, while it’ll cost a staggering $59 if paying within 24 hours of departure. You can find the new checked bag pricing below (this doesn’t include the $10 discount if paying more than 24 hours in advance).
Why JetBlue is raising checked bag fees instead of fares
In a statement, JetBlue has shared that it is increasing checked bag fees to keep its fares “more competitive,” and that “while we recognize that fee increases are never ideal, we take careful consideration to ensure these changes are implemented only when necessary.”
In recent weeks, we’ve heard a lot of airline executives warn that airfare could go up due to higher oil prices. The issue is that demand for airfare is pretty elastic — when airfare goes up, demand goes down.
Even beyond that, Americans are feeling the impacts of higher oil prices, so many people also have less disposable income. If airlines could just easily raise prices, we wouldn’t be in a situation where most US carriers are turning operating losses.
From the perspective of airlines, if they desperately need to extract more revenue from passengers, increasing checked bag fees is a logical place to start, since it’s not a detail that passengers compare quite as closely as just direct ticket costs.
So yeah, the price of oil is impacting checked bag fees, but that’s simply because it’s a more practical way to try to increase revenue, compared to outright raising fares.
Bottom line
JetBlue has just increased checked bag fees by $4-9 per flight, depending on whether you’re traveling over off-peak or peak dates. The airline claims that this is a way to keep fares low — in other words, the airline sees it as the best way to boost revenue without having to increase fares. I have to imagine that JetBlue won’t be alone in moving in this direction, and once costs go up, they rarely come down.
What do you make of JetBlue increasing checked bag fees?
If the fees keep going up like this, it may soon be cheaper to buy your bag a seat on the plane itself instead of checking it in as luggage :-)
Does anyone know when the Blue Sky partnership between United and JetBlue will include reciprocal benefits like free checked bags for elites? Originally they said early spring.
Thank you.
Can United just go ahead and but JBLU already?
What are the odds that they'll lower the fees when fuel prices drop? My guess is "Below Zero."
The 3rd quarter and beyond is what will matter for all airlines including B6.
They will eat the higher fuel costs for this and the 2nd quarter when demand is strong.
There will be huge strategic decisions that have to be made in the near future for B6 to have a future and they won't be the only airline whose future will be permanently altered because of what will be sustained high fuel prices.
I will bet most people don't think about bag fees when booking. Only when the show up at the airport with their steam trunk for Disney and will need to check said trunk and pay for it. Hence the many meltdown YT videos with not very intelligent people going animalistic over a bag fee that did not expect to pay nor can pay. The latest edition coming from you from a Frontier gate at MIA.
Just a reminder: those of us who are veterans and participate in the WeSalute (formerly Veterans Advantage) program get free bags on JetBlue.
People will book away from them at a time where they really need as much business as possible. Such a short sighted move by an incompetent management team.
How will this affect your import/export business, sir?
"People will book away from them at a time where they really need as much business as possible."
You're 100% right, but B6 is betting that people won't book away, and will pay the higher fees, thereby goosing their revenue and making B6 look more attractive to the acquirer.