Delta and Southwest Airlines to raise baggage fees due to soaring fuel prices

The global aviation industry is facing the challenge of rising fuel prices. After tensions in the Middle East disrupted the Strait of Hormuz, a vital oil transportation channel, operating costs have increased and profit margins have been squeezed. According to data from the International Air Transport Association (IATA), the average price of aviation fuel was approximately US$85 to US$90 per barrel in February, before the outbreak of the Iran conflict, but has now soared to about US$209 per barrel globally. Reuters reported that Delta Air Lines and Southwest Airlines stated that the first and second checked bag fees for new bookings will each increase by US$10, raising the first bag fee to US$45 and the second to US$55. Delta plans to apply this fee adjustment to domestic routes and some short-haul international routes, and stated that the third checked bag fee will increase by US$50 to US$200. Delta said the increase will apply to bookings made on or after April 8; Southwest Airlines' changes will take effect for bookings made on or after April 9. This increase is Delta Air Lines' first domestic baggage fee hike in two years, following similar moves by its competitors United Airlines and JetBlue Airways. Unlike some competitors, Delta Air Lines has a buffer advantage: it owns a subsidiary refinery in Pennsylvania. The refinery has a daily capacity of approximately 190,000 barrels and supplies nearly three-quarters of Delta's fuel needs, although the plant is still inevitably affected by crude oil price fluctuations. Checked baggage benefits linked to airline frequent flyer programs, premium fares, and co-branded credit cards will remain unchanged. Delta Air Lines stated that there will be no changes to baggage fees for long-haul international routes. (Compiled by Cheng Shih-yun) 1150408