JetBlue Airways Reportedly Raises Baggage Fees As Rising Fuel Costs Bite

• Fuel prices for Chicago, Houston, Los Angeles and New York averaged $4.57 a gallon last Friday, up nearly 83% since the day before the war began, CNBC reported, citing data from Argus. 
• Airfares have increased globally since the U.S. and Israel’s attack on Iran on Feb. 28.

JetBlue Airways (JBLU) is reportedly raising bag fees for its flyers as rising fuel prices due to the ongoing Iran war begin to weigh on the company.

“As we experience rising operating costs, we regularly evaluate how to manage those costs while keeping base fares competitive and continuing to invest in the experience our customers value,” JetBlue said in a statement to CNBC.

Fuel prices for Chicago, Houston, Los Angeles and New York averaged $4.57 a gallon last Friday, up nearly 83% since the day before the war began, CNBC reported, citing data from Argus. 

Airfares have increased globally since the U.S. and Israel’s attack on Iran on Feb. 28. The recent rise in checked bag fees is the latest indication that airlines are passing higher fuel costs onto American travelers. After labor, jet fuel is the largest expense for airlines.

Rising Fuel Prices 

Crude oil jumped on Monday and stayed well above $100 a barrel mark, signalling a prolonged Iran war. 

Benchmark U.S. oil futures gained $3.24 a barrel Monday to settle at $102.88, their first close above $100 since 2022 when Russia invaded Ukraine and rattled energy markets, as per Wall Street Journal.  Brent crude futures for May delivery were as high as $116 Monday. 

The United States Oil Fund ETF (USO) closed 4.5% higher on Monday, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) ended the day 1.7% higher. 

Retail reaction

Retail sentiment around JBLU stock trended in ‘bullish’ territory amid ‘extremely high’ message volume. 

Shares in the company have fallen around 10% so far this year.