United Airlines has raised its fee for a second checked bag to $100 dollars for international flights.
The charge had been $US70, while Delta’s fee was $US75 before its boost to $US100, Hunter Keay, a Wolfe Trahan & Co analyst, said today in a report. United’s change “reflects an increase in costs associated with carrying bags such as fuel and handling,” said Christen David, a spokeswoman for the carrier.
Airlines have turned to fees to bolster revenue as expenses such as fuel have pinched profits. Chicago-based United joins Delta, the second-biggest US carrier, with an increase as the peak northern summer travel season approaches. July and August have been the busiest travel months since 2009, according to data compiled by Bloomberg.
“Most of these fees tend to be levied on leisure travellers without premier status, the group most likely to respond to price stimulation should airlines be forced to lower fares to fill planes,” Keay said in the report. “As those passengers pay fees in that scenario, the downside case for airline earnings should be limited.”