JetBlue raises bag fees for third time in a year as fuel costs bite

JetBlue Airways raised checked bag fees for economy passengers for the third time in less than a year, citing high fuel costs. A first checked bag now costs $50 if purchased more than 24 hours before departure during nonpeak travel, up from $45. Within 24 hours of departure, the fee rises to $60. During peak periods such as holidays and summer, the fee is $55 for advance purchase, up from $49, and $70 for last-minute bookings.

JetBlue said the increase helps "offset rising fuel and operating costs" while keeping base fares competitive. Customers holding JetBlue co-branded credit cards or elite frequent flyer status are exempt from the new fees.

Jet fuel, the airline industry's second-largest operating cost after labor, has roughly doubled this year since the Iran war began in February. Jet fuel traded at $4.44 per gallon for the U.S. Gulf of Mexico on Tuesday, according to the U.S. Energy Information Administration. The price spike has cost airlines billions and driven up ticket prices across the industry.

Major U.S. airlines typically follow when one carrier raises ancillary fees. Other carriers raised bag fees earlier this year after JetBlue's previous increases.