Air travel cost jump
Jet fuel prices have roughly doubled recently, prompting airlines to raise fares and baggage fees as carriers pass higher fuel costs along to travelers. The spike in operating costs is arriving alongside wide airport disruptions reported across major hubs, and some carriers are rolling out niche perks — for example Southwest will allow eligible West Coast passengers to check a case of wine for free on select routes starting April 24. ( )
Air travel is getting more expensive as airlines raise fares and baggage fees to cover a sharp jump in jet fuel costs. (kpbs.org) Jet fuel has climbed about 95% since February 28, reaching an average of $4.88 a gallon in New York, Houston, Chicago, and Los Angeles on April 2, according to Argus data cited by CNBC. Fuel is typically an airline’s biggest expense after labor. (cnbc.com) Carriers have responded by lifting ticket prices, adding fuel surcharges on some routes, and increasing bag fees. CNBC reported Delta Air Lines, United Airlines, Southwest Airlines, JetBlue Airways, American Airlines, and Alaska Airlines have all raised baggage charges since the latest fuel spike began. (cnbc.com) The fuel shock is tied to the war in Iran and fears of supply disruption through the Strait of Hormuz, a key shipping lane for oil and refined products. KPBS reported a European airport group warned of a possible “systemic jet fuel shortage” if traffic through the strait does not normalize by the end of April. (kpbs.org) Airlines are also trimming schedules as costs rise. CNBC reported Delta told investors it faces a $2 billion fuel headwind this quarter and plans to “meaningfully” scale back capacity, a move that can keep fares elevated if demand holds up. (cnbc.com) The higher costs are landing during a stretch of airport disruption across major hubs. The Federal Aviation Administration’s National Airspace System dashboard showed active delay management on April 16, while FlightAware’s MiseryMap listed 871 delayed flights across the United States at the time its map was indexed. (faa.gov, flightaware.com) At Los Angeles International Airport earlier this month, outside flight trackers and travel outlets reported well over 100 delays and multiple cancellations in a single day. Those reports varied on the exact totals, but each described broad disruption touching large carriers including American, Delta, United, and Alaska. (thetraveler.org, travelandtourworld.com) Some airlines are still trying to market small perks while charging more elsewhere. Southwest said on April 7 that, starting April 24, customers on select West Coast routes will be allowed to check one case of wine at no extra cost under a new “Sip and Ship” program tied to its Santa Rosa, California expansion. (southwestairlinesinvestorrelations.com) That perk comes just after broader bag-fee increases across the industry, and after Southwest itself moved away from its long-running “bags fly free” identity. USA Today reported the wine offer applies to one case from certain West Coast wine-country airports to eligible United States destinations. (usatoday.com, travel.yahoo.com) Pressure is now building on airlines to reverse those increases if fuel eases. Representative Ritchie Torres of New York said in a letter to major airline chief executives that fares and fees should fall when jet fuel prices do. (cnbc.com)
