Airlines in lockstep on bags, fares—United, Delta, Southwest

JetBlue’s baggage-fee increases, which the airline said were caused by rising fuel prices, have kicked off the expected round of escalation by others, including United and Delta, which have each tacked another $10 or more on charges. No word yet from American Airlines, but don’t hold your breath.

The rises bring basic first-bag charges at JetBlue to $39 or $49 during peak periods, $45 at Delta and $50 at United. Each also has upticks for bags paid for last minute.

For Southwest, which until less than a year ago offered all passengers two checked bags free, the increase from $35 to $45 is their first trip on this particular escalator.

In addition to the bag fees, both United and Delta are looking to add revenue from tinkering with fares in their premium cabins. This involves unbundling the perks that go with business and first-class seats, such as extra baggage, lenient cancelation and refunds, meal perks and more so that the airlines can sell ‘basic,’ ‘standard’ and ‘premium’ levels in each cabin.

The goal is two-fold: On the one hand, lowering the gap between the highest-priced economy or premium economy tickets and the lowest-priced business seats may induce some to move up, but the larger goal is to get more revenue from sales of the seats to those for whom price is not the biggest factor. In the past that was generally business travelers, but increasingly these days it’s wealthier leisure travelers.