Wednesday, March 6, 2024
Delta Airlines has recently decided to increase the fee for the first checked bag on domestic flights by 17%, adding an additional $5 to the already substantial $30 fee. This adjustment positions Delta as the third major U.S. carrier to elevate bag fees in recent weeks, trailing behind American Airlines and United Airlines, which both declared similar hikes in February, merely three days apart.
This trend of raising fees, also adopted by smaller carriers such as Alaska Airlines and JetBlue Airways, reflects a pattern where major U.S. airlines tend to mimic each other’s pricing adjustments, an action behavior analysts sometimes describe as following a herd instinct.
On Tuesday, Delta announced that checking a first bag on a domestic flight would now cost $35, with the fee for a second checked bag increasing from $40 to $45. This marks the first time Delta has increased its bag fees for domestic flights since 2018.
The airline justified this hike as a means to contend with rising industry costs, which were not specified. It was noted, however, that customers who enjoy status perks would continue to benefit from the privilege of checking their first bag at no cost, and those holding first-class tickets would be entitled to check two bags free of charge.
Since American Airlines pioneered the concept in 2008 amidst escalating jet fuel prices, bag fees have emerged as a reliable revenue stream for airlines. The most recent statistics available, from 2022, show that U.S. airlines collectively earned $6.8 billion from checked-bag fees. American Airlines led the revenue from these fees, garnering $1.4 billion, followed by United Airlines with $1.1 billion, and Delta securing third place with earnings of $979.4 million.
