Rising fuel costs push Delta, others to raise fees as revenue grows

ATLANTA - Rising fuel prices are putting new pressure on travelers and airlines alike, even as Atlanta-based Delta Air Lines reported stronger-than-expected first-quarter results and projected continued revenue growth for the months ahead.

What they're saying:

Delta said its first-quarter adjusted revenue reached a record $14.2 billion, up 9.4% from a year earlier, while adjusted earnings came in at 64 cents per share. The airline reported adjusted operating income of $652 million and an operating margin of 4.6%.

But the company also said fuel remains a major challenge. Delta’s first-quarter fuel expense totaled about $2.6 billion, up 8% year over year, and CEO Ed Bastian said the airline expects fuel costs to climb by more than $2 billion in the second quarter.

That pressure is already showing up for passengers. Delta is among the major airlines increasing checked bag fees as carriers try to offset higher operating costs. Under the new pricing, a first checked bag now costs $45, a second costs $55 and a third jumps to $200.

Bastian said Delta expects the higher fuel environment to stick around for at least the next several months, making it difficult to provide updated full-year guidance. Even so, the airline said demand remains strong and projected second-quarter revenue growth in the low teens, with an operating margin of 6% to 8% and adjusted earnings of $1 to $1.50 per share.

Delta said it is trying to protect margins by slowing capacity growth, trimming some lower-demand flying and moving quickly to recover higher fuel costs. The airline also pointed to its refinery business as a financial advantage, saying it expects roughly a $300 million benefit in the second quarter.

Executives said premium travel, loyalty revenue and corporate demand continue to help support results. Premium revenue rose 14% in the first quarter, while loyalty-related revenue increased 13%.

For travelers, though, the bottom line is simpler: flying with checked bags is getting more expensive at a time when airlines are facing higher fuel bills and broader uncertainty in the energy market.

PREVIOUS STORY: Delta Air Lines increasing checked bag fees due to fuel costs

What about the other airlines?

All major airlines entered the year with strong financial momentum, reporting solid first-quarter earnings driven by steady travel demand and higher ticket prices. Many carriers saw revenue increase year over year, particularly in premium and business travel segments, helping offset rising operating costs.

However, that outlook is becoming more uncertain as fuel prices surge. Industry analysts say airlines are facing sharply higher jet fuel costs, which could significantly eat into profits in the months ahead. In response, carriers are raising fares, increasing baggage fees and cutting back on less profitable routes to protect margins.

While most major airlines are still expected to remain profitable in the near term, the biggest risk is how long fuel prices stay elevated. If costs remain high for an extended period, profit margins could tighten further, and some airlines — particularly those with fewer financial buffers — could face increasing pressure later this year.

What are the news fees?

American Airlines

• Before (early 2026 standard):1st bag: $40 ($35 prepaid)2nd bag: $50 ($45 prepaid) 
• 1st bag: $40 ($35 prepaid)
• 2nd bag: $50 ($45 prepaid) 
• Now (latest changes):1st bag: ~$502nd bag: ~$603rd bag: $200 
• 1st bag: ~$50
• 2nd bag: ~$60
• 3rd bag: $200 

👉 Increase: about +$10 per bag (plus added surcharges for some fares)

Delta Air Lines

• Before (2024–early 2026):1st bag: ~$352nd bag: ~$45 
• 1st bag: ~$35
• 2nd bag: ~$45 
• Now (2026 increase):1st bag: $452nd bag: $553rd bag: $200 (up from ~$150) 
• 1st bag: $45
• 2nd bag: $55
• 3rd bag: $200 (up from ~$150) 

👉 Increase: +$10 (first & second bags), +$50 (third bag)

United Airlines

• Before:1st bag: ~$352nd bag: ~$45 (industry standard) 
• 1st bag: ~$35
• 2nd bag: ~$45 (industry standard) 
• Now:1st bag: ~$502nd bag: ~$603rd bag: increased (up to ~$200 on some routes) 
• 1st bag: ~$50
• 2nd bag: ~$60
• 3rd bag: increased (up to ~$200 on some routes) 

👉 Increase: roughly +$10–$15 per bag

Southwest Airlines

• Before (pre-2025):1st bag: FREE2nd bag: FREE
• 1st bag: FREE
• 2nd bag: FREE
• Then (2025 change):1st bag: $352nd bag: $45 
• 1st bag: $35
• 2nd bag: $45 
• Now (2026 increase):1st bag: $452nd bag: $55 
• 1st bag: $45
• 2nd bag: $55 

👉 Biggest shift: from free → paid → higher fees

JetBlue

• Before:1st bag: ~$35–$40
• 1st bag: ~$35–$40
• Now:1st bag: up to ~$49 (varies by demand/peak travel) 
• 1st bag: up to ~$49 (varies by demand/peak travel) 

👉 Increase: ~$4–$10 depending on timing

Alaska Airlines

• Before:1st bag: ~$352nd bag: ~$45 
• 1st bag: ~$35
• 2nd bag: ~$45 
• Now:1st bag: +$5 increase2nd bag: +$10 increase3rd bag: $200 
• 1st bag: +$5 increase
• 2nd bag: +$10 increase
• 3rd bag: $200 

👉 Increase: smaller bump, but still rising

How travelers can save money

Here are some tips for travelers who are looking to save money:

• Pack light if you can. Avoiding checked bags is one of the easiest ways to cut costs now that bag fees are higher.
• Use a carry-on strategically. Plan outfits ahead of time, wear bulky items on the plane and use packing cubes to make the most of limited space.
• Consider an airline credit card. Some airline-branded cards include free checked bags, which can quickly offset the annual fee if you travel more than a couple of times a year.
• Compare the full trip cost, not just the ticket price. A lower fare may not actually be cheaper once bag fees and seat charges are added in.
• Book early when possible. Airlines often adjust prices as fuel costs rise, so locking in plans sooner may help avoid later increases.
• Travel on lighter-demand days. Midweek flights are often less expensive than peak weekend travel.
• Skip extras you do not need. Seat upgrades, early boarding and other add-ons can raise the total quickly.
• Join the airline’s loyalty program. Frequent travelers may get perks, discounts or points that help reduce future travel costs.
• Watch for bundled fares carefully. Sometimes paying slightly more upfront for a fare that includes bags can save money overall.
• Set a travel budget before booking. Factor in baggage, parking, food and other extras so the final cost does not catch you off guard.