US airlines raise fees and cut routes as jet fuel costs surge

Fuel typically accounts for about 30 per cent of an airline’s operating costs. With prices surging well beyond earlier forecasts, carriers have begun revising pricing, capacity, and route networks, passing much of the burden on to passengers through higher ticket prices, fuel surcharges, and baggage fees.

Airlines face fuel price surge

Delta Air Lines has scaled back expansion plans and cut capacity growth by about 3.5 percentage points for the current quarter, the Independent reported. It has raised fees for the first and second checked bags by $10 and for the third bag by $50. The carrier has warned of weaker profits and delayed its full-year outlook, citing fuel price uncertainty.

United Airlines has begun cutting unprofitable flights over the next two quarters and expects oil prices to remain above $100 a barrel through 2027. Checked baggage fees have risen by $10 across the US, Mexico, Canada, and Latin America, according to Reuters. The airline said it had managed to raise fares without a significant drop in bookings.

American Airlines has increased checked baggage fees by $10 for the first and second bags and by $150 for the third on domestic and short-haul international flights. The carrier has also reduced some benefits for economy passengers.

Southwest Airlines, long known for its customer-friendly pricing, has raised fees by $10 for both the first and second checked bags, bringing charges to $45 and $55 respectively.

Alaska Air Group has raised baggage fees across its network, including on flights operated by Hawaiian Airlines. First-bag fees have risen by $5 and second-bag fees by $10, the Independent reported. Charges for a third checked bag have jumped from $50 to $200.

JetBlue Airways has increased checked baggage fees by $4 to $9 depending on the route and service tier.

Frontier Airlines is reviewing its full-year financial forecast and may adjust routes, pricing, or capacity depending on how fuel markets move in the coming months.

Spirit Airlines faces perhaps the most acute pressure. Its turnaround plan assumed fuel prices of about $2.24 per gallon in 2026, but by mid-April prices had reached roughly $4.24 — nearly double the estimate, according to CBS. The airline, which has struggled financially for years, now risks liquidation. It has already cut routes, reduced its fleet, and introduced bundled fares to attract higher-paying customers.

What’s next for aviation industry?

The surge in jet fuel prices has shuffled airline strategies across the globe. Carriers have turned to higher fees, route cuts, and reduced capacity to protect margins. These changes are likely to push ticket prices higher and reduce travel options.

Passengers may face a volatile market with fluctuating fares and fewer choices. Airlines are expected to continue adjusting pricing as long as fuel costs remain high.