JetBlue (NASDAQ:JBLU) baggage fees have been increased as the company seeks to offset weaker revenue and other expenses.
The airline used to allow passengers to check their luggage for free but it has now become the first major U.S. airline to increase its baggage fees to $30 for the first checked bag. The move marks a $5 increase over its previous price of $25.
The $5 price bump will be effective starting on trips that are booked this Monday or later. JetBlue also increased the price for a second checked bag by $5, from $25 to $40, while the price of a third piece of checked luggage has gone up from $100 to a whopping $150.
The airline made the decision as its ancillary revenue has declined, while fuel prices have increased, along with other costs. JetBlue is hoping that the decision will help fuel its growth once again as it seeks to increase its profitability.
“As a matter of good business, we constantly review and adjust our ancillary pricing to ensure a healthy business,” said JetBlue spokesman Doug McGraw in a statement. The company first started charging checked bags in 2015 as part of its latest revamping.
You may be able to check a bag for free if you buy more expensive fares or have attained a certain loyalty program level with JetBlue.
JBLU stock gained a fraction of a percentage on Monday following the news.