JetBlue has implemented dynamic pricing for checked baggage fees, with prices ranging from $35 to $50 depending on the day of departure. Customers can get a $10 discount if they add a checked bag during booking and at least 24 hours before check-in. Peak dates, which make up about half of the year, result in higher fees and encompass busy travel seasons like summer and holidays such as Thanksgiving and Christmas. Checking a bag within 24 hours of departure incurs a higher fee, ranging from $45 to $50.
The first checked bag remains free on JetBlue’s transatlantic flights, except for customers flying on the cheapest fare (Blue Basic), which now costs between $60 to $70. The airline attributes the increase in baggage fees to the rising cost of transporting bags due to factors such as increased wages and higher fuel costs. JetBlue stated that while they do not like increasing fees, it is necessary to cover the increased costs and work towards profitability. JetBlue flyers with certain benefits, such as an airline-branded credit card or Mosaic status, are exempt from the price increases.
US-based airlines, including JetBlue, have been raising baggage fees in recent months. American Airlines was the first to increase fees to as much as $40, followed by increases from United Airlines and Delta Air Lines. JetBlue’s latest fee structure marks its second increase since February. The airline has been facing losses, with an adjusted loss of $151 million in 2023 and failed attempts to purchase Spirit Airlines. Activist investor Carl Icahn acquired a 10% stake in JetBlue and announced plans to win two seats on the board of directors at an upcoming shareholders’ meeting.
In response to the ongoing financial challenges, JetBlue recently announced a reduction in flights at Los Angeles International Airport and exits from five cities as part of its efforts to focus on profitable routes. The airline continues to navigate the effects of the pandemic on the travel industry and make adjustments to improve financial performance. Customers who have benefits like premium fares, credit cards, or status with the airline are not affected by the baggage fee increases. JetBlue’s decision to implement dynamic pricing for checked bags reflects ongoing efforts to address cost challenges and position the company for profitability.
