JetBlue is raising baggage fees by $4–$9 for economy passengers, citing increasing jet fuel prices due to global oil supply shortages amid the Iran war.
“As we experience rising operating costs, we regularly evaluate how to manage those costs while keeping base fares competitive and continuing to invest in the experience our customers value,” JetBlue wrote in a statement to FOX Business. “Adjusting fees for optional services used by select customers, such as checked baggage, allows us to continue offering more competitive fares while delivering the onboard experience our customers love, including complimentary snacks and drinks, unlimited, high-speed Wi-Fi and seatback entertainment screens.”
“While we recognize that fee increases are never ideal, we take careful consideration to ensure these changes are implemented only when necessary,” the statement continued.
For domestic, Caribbean and Latin America flights, the first checked bag will now cost $39 during off-peak travel, up from $35, and $49 during peak periods, up from $40. Travelers who pay less than 24 hours before departure will still face an added $10 charge.
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Passengers with eligible JetBlue co-branded credit cards or elite frequent flyer status remain exempt from the bag fees.
When an airline raises fees, competitors often follow, but there are no indications yet from American Airlines, United Airlines, Delta Air Lines, Southwest Airlines or Frontier Airlines.
Southwest does not “have any immediate plans to increase fees due to macroeconomic factors,” a spokesperson told the New York Post.
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The move reflects broader pressure on airlines as fuel prices surge globally following the U.S. and Israel’s attacks on Iran that began on Feb. 28. Jet fuel in major U.S. markets averaged $4.62 a gallon Tuesday morning, up more than 83% from the day before the war began, according to Argus data published by Airlines for America.
“The reality is, jet fuel prices have more than doubled in the last three weeks,” United CEO Scott Kirby wrote in a memo to employees earlier in March. “If prices stayed at this level, it would mean an extra $11B in annual expense just for jet fuel. For perspective, in United’s best year ever, we made less than $5B. That may sound scary, but the first piece of good news is that, for now at least, demand remains the strongest we’ve ever seen. The 10 biggest booked revenue weeks in our history have been the last 10 weeks.”
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Kirby added, however, that “it may be a challenge to continue passing through much of the increased fuel price if oil stays higher for longer.”
President Donald Trump, with his business eye on affordability amid the war, took to Truth Social on Tuesday morning urging oil-needy countries globally to lean in to deal with their supply shortages.
“All of those countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you: Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT,” Trump wrote on Truth Social. “You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil!”
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While this jet fuel price is the highest of the year, with a steady upward trend line since the start of the war, Treasury Secretary Scott Bessent told Fox News that the fuel price increases are temporary due to strains on global fuel supply.
It is tied to the Iranian retaliation on choking the Hormuz Strait, where the forced closure is increasing oil prices globally in an anticipation of supply shortages.
Supplying the world more oil from Iran is going to ultimately bring down prices in America, according to Bessent, who noted the U.S. does not rely on Middle East oil but the Strait of Hormuz choking has spooked crude futures markets.
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Bessent said the U.S. has avoided striking Iranian energy infrastructure even while escalating military operations, arguing the goal is to preserve supply while keeping pressure on Tehran.
“We have lots of levers,” Bessent said. “We’ve got plenty more that we can do.”
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