Major US airline announces dynamic pricing for LUGGAGE - bags now $15 more for major holidays and summer vacations

JetBlue has introduced dynamic pricing for checked baggage fees - the first major US carrier to do so. 

The airline already charges higher fees depending on when you pay for your luggage, but prices will now also depend on the time of year passengers travel.

A passenger traveling on a standard domestic ticket during an 'off peak' period who pays for one bag more than 24 hours before the flight will pay $35 under the new rules.

During a 'peak' period - for example when families are heading on summer vacations or Thanksgiving -  they will have to pay $50 to check one bag at the airport. 

For two bags on an international flight, the new rules mean travelers could end up paying as much as $120 to check their baggage within 24 hours of the flight leaving. 

A passenger traveling on a standard domestic ticket during an 'off peak' period who pays for one bag more than 24 hours before the flight will pay $35 under the new rules, and $50 to pay at the airport during peak times

The carrier said 'peak' pricing would apply to busy periods including Presidents' Week, Thanksgiving and winter holidays, and spring and summer travel seasons. 

But Zach Griff, senior aviation writer at The Points Guy, warned that over 40 percent of the year is defined as a peak period. 

JetBlue outlines the new pricing structure in detail on its website. 

On domestic flights, if you pay to check a bag more than 24 hours before the flight time, you will save $10 each on checking up to two bags. 

But if you wait to check the bag at the airport, the fees are higher.

On 'Blue,' 'Blue Basic,' and 'Blue Extra' fares, the airline's cheaper ticket options, a first checked bag costs $45 for off-peak and $50 for peak times. 

Paying for a second bag at the airport will set you back $60 in the off-season, and $70 in peak traveling times. 

In the middle of summer vacation season, this means a traveler would have to fork out $120 to pay for two checked bags at the airport.  

The fees also rise for international flights - hitting as much as $185 for two bags checked at the airport at peak times. 

Non-basic fare tiers, such as 'Blue Plus', and JetBlue Plus credit card holders still receive a free first bag on domestic and international flights.

Peak pricing now applies to all tickets booked after March 22. 

The cost of transporting bags has gone up significantly due to increased wages and higher fuel costs, JetBlue told DailyMail.com

Airlines have long used so-called dynamic pricing to set ticket prices at different times of year, but the major US carriers have so far not used it for add-on flight services. 

The cost of transporting bags has gone up significantly due to increased wages and higher fuel costs, and JetBlue remains unprofitable since the Covid-19 pandemic, the company told DailyMail.com in a statement. 

'While we don't like increasing fees, we are making these adjustments to help get our company back to profitability and cover the increased costs,' a spokesperson said.

It added that by only hiking prices for 'services that only certain customers use,' it is able to keep base fares as low as possible. Seatback TVs and Wi-Fi remain free for all passengers, it added.   

JetBlue reported a net loss of $104 million for the last three months of 2023, compared with a $24 million profit a year earlier. 

Last month, it called off plans to buy discount airline Spirit Airlines for $3.8 billion after a federal judge barred the deal over concerns it would violate antitrust law and drive up fares. 

JetBlue has struggled to turn a profit in recent months so this move is designed to boost revenues, Zach Griff, from The Points Guy, told DailyMail.com. 

Zach Griff, senior aviation writer at The Points Guy, said JetBlue has struggled to turn a profit in recent months

'That said, JetBlue is starting to look more and more like an ultra-low-cost carrier with this new peak and off-peak pricing model,' he said. 

'Most of the budget carriers in the US, like Spirit and Frontier, use demand-based pricing for bags, and this is something that larger airlines have historically decided to avoid. But JetBlue is bucking that trend as it seeks to earn more money.'

He added that JetBlue raised the base checked bag fees with no notice earlier this year - making this the second time in a matter of months that the airline is raising costs. 

Will other airlines follow suit? 

'The airline industry often feels like a game of "monkey see, monkey do," so I wouldn't necessarily be surprised to see other carriers copy JetBlue,' Griff added.

'After all, earlier this year, most US carriers raised their checked bag fees after Alaska and JetBlue started the trend.' 

JetBlue said 'peak' pricing would apply to busy periods including Presidents' Week, Thanksgiving and winter holidays, and spring and summer travel seasons

Many of the main US airlines have also put up baggage prices this year. 

At the start of March, Delta became the latest to hike its baggage fees - the last of the major three US carriers to do so.

American Airlines sparked backlash when it raised prices in mid-February, a move which was promptly followed by United Airlines. 

All raised prices by $5 a bag and most are now between $35 to $45 a bag for the first and second checked checked items.

Even before the increases, airlines were making billions of dollars from baggage fees. 

Airlines including Delta, United and American pocketed a staggering $33.3 billion from baggage fees last year

A report in February revealed airlines including Delta, United and American pocketed a staggering $33.3 billion from baggage fees last year - a sharp 15 percent rise from $29 billion in 2022.

This sum is solely made up of fees from larger carry-on bags, standard checked baggage fees, and fines for overweight or extra large checked bags.

It accounted for 4.1 percent of global airline revenue last year.