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Delta Air increases checked baggage fees due to rising jet fuel prices

Delta Air Lines announced on Tuesday that it would increase the fees for checked baggage on select domestic and international short-haul routes. The airline is trying to offset soaring jet fuel costs linked to escalating Middle East tensions.

This is the first time Delta has increased its domestic baggage fees for two years. JetBlue Airways and United Airlines have also taken similar steps.

After tensions in the Middle East caused the Strait of Hormuz to be disrupted, airlines worldwide are struggling with dramatically?higher fuel costs, which have pushed up operating costs, and squeezed margins.

According to the International Air Transport Association, jet fuel has risen to $209 per barrel worldwide. It had been averaging $85-$90 per barrel prior to the U.S./Israeli strike on Iran last February.

Delta has announced that the fees for the first and second bags checked on any bookings made after Wednesday, will go up by $10. The third bag checked will cost $50.

The fee for the first bag to be checked will now increase to $45; the second bag to $55; and the third to $200.

Delta has a buffer in the form of a Pennsylvania-based refinery owned by a subsidiary with a daily capacity of approximately 190,000 barrels. This refinery supplies about three quarters of Delta's fuel needs.

The benefits of checked baggage that are tied to Delta's frequent flyer program, co-branded credit cards and premium fares will not change.

Delta has also confirmed that there will be no change to the baggage fee on international long-haul routes. (Reporting and editing by Vijay Kishore in Bengaluru, with Shivansh Tiwary reporting from Bengaluru)

(source: Reuters)