JetBlue raises its checked bag fees by as much as $9 as the Iran war affects fuel costs

U.S. carrier JetBlue has raised its checked bag fees by as much as $9 as the war in the Middle East disrupts global oil supplies and increases fuel prices.

The new fees took effect Monday. For most domestic economy passengers, the first checked bag now costs $39, up from $35. During peak travel times such as April spring breaks, major holidays and the summer, passengers will have to pay $49 instead of $40, the airline said.

The airline, which has its flagship terminal at New York’s John F. Kennedy International Airport, said in an emailed statement to The Associated Press on Tuesday that charging more for optional services “used by select customers” would allow it to keep its airfares competitive.

“While we recognize that fee increases are never ideal, we take careful consideration to ensure these changes are implemented only when necessary,” JetBlue said.

Airlines around the world are confronting soaring operating expenses due to jet fuel prices that have jumped more than 85% since the Iran war began on Feb. 28. The conflict has curtailed ship traffic through the Strait of Hormuz, a key passageway for a fifth of the world’s oil. Airspace closures in parts of the Middle East have added to the price pressure by forcing some airlines to take longer routes that burn more fuel.

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A number of non-U.S. carriers already have added fuel surcharges or raised ticket prices in response.

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Jet fuel is one of the airline industry’s biggest expenses, typically accounting for about a quarter of operating costs. The average price for a gallon of jet fuel reached $4.64 on Tuesday, up from $2.50 the day before the conflict broke out, according to Argus Media. The energy market intelligence company’s U.S. Jet Fuel Index tracks the average prices across major hubs, including Chicago, Houston, Los Angeles and New York.

Industry analysts expect U.S. airlines to pass some of their higher fuel costs on to travelers through add-ons, such as checked bags and seat upgrades, since they don’t typically have fuel surcharges. And once one airline raises fees, analysts say, others are likely to follow.

JetBlue also increased the charge to check a second bag from $50 to $59 for off-peak periods, and from $60 to $69 for periods of peak demand.

The carrier said some customers would still be able to check their first bag for free, including those who hold one of the airline’s co-branded credit cards and loyalty program members who reach certain tiers. Most customers flying transatlantic routes will also continue to receive their first checked bag free.

Iran’s determination to close off the Strait of Hormuz to ships from nations it considers unfriendly has caused crude oil prices to fluctuate wildly and in turn, driven up fuel prices. Earlier this month, the CEOs of Delta Airlines, American Airlines and United Airlines reported that higher jet fuel prices had already added about $400 million in operating costs.