Alaska Air, American Airlines hike checked baggage fees amid soaring fuel prices

American Airlines and Alaska Air said on Thursday they are hiking checked baggage fees, as carriers seek to pass on soaring jet fuel costs linked to escalating tensions in the Middle East.

They are among the last major U.S.-based carriers to take steps to protect their margins from higher jet fuel prices, driven by disruptions to shipping through the Strait of Hormuz, which carries about a fifth of global oil flows.

Jet fuel, which averaged about $85 to $90 a barrel in February before the Iran war started, has surged to around $209 per barrel globally, according to the International Air Transport Association.

Alaska, along with Hawaiian Airlines, plans to increase checked bag fees by $5 for the first and $10 for the second for passengers on its North American flights, bringing the cost to $45 and $55 respectively. American Airlines said it would raise the fee by $10 each for the first and the second checked bag for travelers booking domestic and short-haul international flights, starting Thursday.

The airline said there are no changes to its loyalty programs, Huaka’i and Club 49, which continue to offer checked-bag benefits for intra-state travel within Hawaii and Alaska.

Both airlines have also increased the cost of a third checked bag by $50 to $200.

American Airlines already had a similar pricing structure for third checked bags in place for certain locations, including Canada. It has also outlined an additional $5 bump on checked bags for customers flying with basic economy tickets, effective from May 18.

Basic economy fliers will also be charged a fee to select a seat and will not be eligible for complimentary system-wide upgrades on flights from May 18, American said.

Meanwhile, travelers who purchase tickets in premium cabins will continue to receive free baggage on both domestic and international flights, American added.