Major U.S. airlines, including Southwest and Delta, have raised baggage fees and adjusted flight schedules in response to soaring jet fuel prices triggered by the Iran war. The conflict, which began on February 28, disrupted oil supplies through the Strait of Hormuz, a critical waterway for global energy shipments.
Immediate Action & Core Facts
- Fee Increases: Southwest Airlines raised checked baggage fees by $10, with one bag now costing $45 and a second at $55. Delta increased fees by $10 for the first two bags and $50 for a third. Both airlines cited rising jet fuel costs as the primary driver.
- Flight Adjustments: United Airlines announced plans to trim off-peak flight schedules, particularly on Tuesdays and Wednesdays, to manage unprofitable routes due to higher fuel expenses.
Deeper Dive & Context
Fuel Price Surge
Jet fuel prices nearly doubled since the war began, reaching $4.81 per gallon on March 30, up from $2.50 on February 27, according to Argus Media. Analysts at Deutsche Bank projected that sustained high fuel prices could lead to a 17% increase in airfares over a year.
Industry Response
Airlines have passed costs to consumers through higher ticket prices and additional fees. Domestic round-trip fares rose to $350 from $336, while international fares climbed to $998 from $774, per Kayak data. Southwest ended its long-standing "bags fly free" policy in May 2025, marking a shift in its business model.
Traveler Impact
Experts advise booking flights early to lock in current prices, as elevated fares and reduced flight capacity are expected to persist for six to nine months. Families and leisure travelers, who often lack elite status perks, are disproportionately affected by the fee hikes and schedule cuts.
Ceasefire and Outlook
A two-week ceasefire was announced on March 30, but analysts remain cautious about near-term price relief due to ongoing supply disruptions. The conflict's long-term impact on air travel costs remains uncertain.