News

4 of the 6 largest US airlines have now hiked bag fees in 2024

Sean CudahySenior Aviation Reporter
Sean Cudahy is an aviation reporter covering news about airlines, frequent flyer programs and consumer travel issues.

February 23, 2024 • 9 min read

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Quick summary

Four major U.S. airlines have increased checked bag fees in early 2024, with the first bag now costing up to $40 if paid at the airport.
This move continues a long-standing trend of rising ancillary fees, which have become a significant revenue source for airlines.
Airlines cite higher fuel and labor costs as reasons for these fee hikes, while some travelers express frustration over added expenses and potential boarding delays.
There are strategies to avoid checked bag fees, such as qualifying for elite status, using certain credit cards, or flying with carriers that still offer free checked bags.

What to consider

Checked bag fees vary depending on whether payment is made online in advance or at the airport, with advance payment typically costing less.
Some basic economy or budget fares may not include a free full-size carry-on, and overhead bin space can be limited on crowded flights.
Southwest Airlines remains an exception, continuing to offer two free checked bags to all passengers.

What you'll miss from the article

A detailed breakdown of how checked bag fees have evolved, their impact on airline revenue, and practical tips for minimizing or avoiding these charges.

Generated by AI with support from our editorial team.

This story has been updated with new information

We’re less than two months into 2024, and already four major U.S. airlines have raised checked bag fees.

On Friday, United Airlines joined three of its competitors in announcing it would charge customers an extra $5 to check a bag.

The move follows similar steps in recent weeks by Alaska Airlines, JetBlue and American Airlines, which made headlines Tuesday when it revealed steeper bag fees, along with other changes to its AAdvantage loyalty program.

Going forward, instead of $30 for the first bag, American flyers will have to pay an additional $5 or $10 on a domestic flight, depending on how you pay: It'll cost $35 if you pay online ahead of time, or $40 if you wait to pay for the bag at the airport.

On United, it will also now cost travelers $35 or $40 for their first bag — also depending on whether they pay at the airport, or in advance online.

Unsurprisingly, the announcements have drawn the ire of many customers.

American Airlines Boeing 737 Airbus A321 Chicago O'Hare ORD — ZACH GRIFF/THE POINTS GUY

“Great, now people can bring even more on board and make boarding and deplaning take longer,” one reader commented on TPG’s Facebook page following American's announcement.

“I presume the other major U.S. airlines will follow suit to some degree, or potentially in another capacity, to widen their margins,” another correctly predicted.

Bag fees date back to the early 2000s

Over the years, there has been a definite domino effect when it comes to bag fee hikes. That certainly was the case back in 2008, as U.S. carriers first began charging customers for their first checked bag in the face of skyrocketing fuel prices.

At the time, American told investors it expected its new $15 bag fee (about $21 by today’s standards, adjusted for inflation) would generate several hundred millions of dollars annually.

“It was a way for them to immediately generate revenue, because they had a dire need, because of the huge increase in fuel prices,” recalled Jay Sorensen, president of the airline consultancy IdeaWorks.

Fast-forward some 15-plus years, and those fees have never gone away. Far from it.

How much do airlines make on bag fees?

According to the Bureau of Transportation Statistics, U.S. airlines made $6.8 billion from bag fees in 2022, the last full year for which it has statistics.

That was up about 17% from pre-pandemic 2019, and roughly double that of a decade ago (though with a sharp rise in passenger traffic over the last 10 years, too).

And, as frequent travelers know, add-on fees have become far more prevalent since then.

Many budget airlines offer low base fares, but then exclude plenty of services that travelers once expected would be included with a ticket. That means you can end up paying extra for everything from seat selection to a full-size carry-on bag. It can be a similar story with many larger carriers' basic economy fares, too.

Ancillary fees are a significant source of revenue for ultra-low-cost carriers like Spirit Airlines and Frontier Airlines.

Keep in mind that airlines enjoy far less stringent taxes on optional fees than on fares; a carrier typically makes more money off $100 in ancillary charges than it does off a $100 ticket.

So there's little incentive to do away with this "unbundling" trend — one that Rob Britton, a former American Airlines official now on the faculty at Georgetown University's McDonough School of Business, argues has had some benefits.

“It’s just like restaurant pricing. If you don’t want dessert, you don’t pay for dessert,” Britton argued. "It gives the airline, obviously, some nice additional revenues. And it gives the customer the ability to pay for only what they want. And isn’t that a good thing?"

Suffice to say, not everyone sees it that way. The Biden administration, for one, has often folded airlines into an ongoing consumer protections push, including directing scrutiny toward add-on fees.

Concerns about profitability

As airlines have announced this latest round of bag fee hikes, carriers have again pointed to rising costs. In recent months, numerous airlines have bemoaned steeper fuel and labor costs as a pesky hurdle to profit margins.

“It’s one step we are taking to get our company back to profitability,” JetBlue said in a statement regarding its new fee structure, which sets the price of a checked bag at $35 for customers who pay at least 24 hours in advance, or $45 at the airport.

jetblue plane — A JetBlue aircraft at the gate at John F. Kennedy International Airport (JFK). SEAN CUDAHY/THE POINTS GUY

American likewise cited inflationary pressures in announcing its first baggage fee hike since 2018 — a year in which multiple airlines also raised bag fees in a matter of days.

What does this mean for the future?

For starters, it could mean a lot more customers trying to fit rollaboard bags into overhead bins.

“They obviously feel they have fixed their carry-on problem," Sorensen said of American's decision. "Because when you do raise rates, you’re providing a larger incentive for people to carry on. And from my understanding with my airline clients, this is a very major problem for airlines, in terms of too many carry-ons. So this is going to aggravate that situation. Perhaps they believe they have that under control."

United, for its part, expects to take delivery of hundreds of new aircraft over the coming years, which it says will have enough overhead bin space for every passenger's suitcase.

Could these fee hikes entice more passengers to add a cobranded credit card to their wallet to their wallet?

“They’re creating an environment in which the credit card looks that much more attractive,” Sorensen said of American; most of its credit cardholders get their first back free on domestic flights.

United Chase credit card holders will similarly still get their first checked bag free, the airline said Friday.

To date, Delta Air Lines has not announced any plans to hike its checked bag fees.

How to avoid paying for checked bags

However you slice it, though, checking a bag is getting more expensive on a growing number of airlines.

In 2008, when checked bag fees started en masse on American, you’d pay $30 round-trip. Today, if you waited to pay for your bags at the airport, you’d pay $80 round-trip.

If you did the same on JetBlue, you’d pay $90 round-trip.

But there are ways to avoid paying for a bag beyond simply buying a higher-priced premium cabin ticket.

jetblue cabin — SEAN CUDAHY/THE POINTS GUY

Go without a checked bag

The most obvious solution, of course, is to ditch the checked bag and go carry-on only. Many travelers prefer this method anyway, to avoid the hassles of checking a bag and waiting at baggage claim.

That certainly was the case during the baggage chaos we saw two years ago.

However, there can be some hang-ups with this strategy. First, you’ll need to comply with the Transportation Security Administration's 3-1-1 requirements, which means no large bottles of liquids — such as shampoo or beverages.

Plus, many tickets (on budget airlines or in basic economy) don’t allow a free full-size carry-on. And there may not be space in the overhead bin for your bag. In this case, you should still be able to gate-check it to your final destination — often at no cost, but there's some hassle there.

Add a credit card that gets you free bags

Most airline cobranded credit cards come with a free checked bag — often for the cardholder and a certain number of traveling companions on the same reservation.

There are also a handful of flexible currency rewards credit cards that include broad airline or travel credits that can reimburse travelers for ancillary costs for items like checked bags in the form of a statement credit.

Qualify for elite status

All of the legacy U.S. carriers offer a free checked bag for elite status members as a perk for even those who reach just the lowest tier of status.

So, if you can earn your way to status, you can often earn one or more free checked bags on that carrier.

Condense into fewer bags

If all else fails, condense into fewer bags: Fewer bags means fewer fees.

Remember: Every traveler on every U.S. airline gets a free personal item that can fit under the seat in front of them, like a backpack.

Don't forget about Southwest Airlines

And, finally, we'd be remiss not to mention Southwest Airlines. The Dallas-based carrier still offers every traveler two free checked bags.

Related reading:

Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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