At a glance:
- Major US airlines servicing Cayman and other short-haul international routes have increased checked baggage and ancillary fees amid rising fuel and operating costs.
- This month, American Airlines will impose its third baggage fee increase since December, while third checked bag fees on several carriers have climbed to as much as US$200.
- US airlines collected more than US$5.47 billion in checked baggage fees during the first three quarters of 2025 alone, highlighting how ancillary charges have become a major revenue source.
As US airlines continue grappling with sharply higher fuel costs and mounting operational expenses, travellers flying on domestic and short-haul international routes – including services between North American cities and Cayman – are being hit with higher charges for checked baggage and a growing list of ancillary fees.
The fees are what analysts describe as a broader industry-wide push to protect profit margins while keeping airfare prices relatively competitive. In addition to the American airlines listed below, two Canadian airlines – Air Canada and WestJet have also announced increases in baggage fees.
American Airlines
In less than six months, the cost of checking a first bag on American Airlines Caribbean and other short-haul international routes, including Cayman, has risen by as much as US$20 depending on when and how passengers pay.
Under changes introduced in April and in effect through 18 May, passengers travelling within the US and on short-haul international flights, including Cayman, pay US$50 for a first checked bag and US$60 for a second checked bag when paying at the airport. Travellers who prepay online or through the airline’s app receive a US$5 discount per bag. The airline also raised the cost of a third checked bag by US$50, increasing the fee from US$150 to US$200.
A further increase will take effect on 18 May for Basic Economy passengers. Under the new rates, airport check-in baggage fees will increase again to US$55 for a first checked bag and US$65 for a second checked bag. Passengers who prepay online or through American’s website or mobile app will pay US$50 and US$60 respectively.
The 18 May adjustment will mark the third baggage fee increase American has imposed on Caribbean and other short-haul international routes since December 2025, when the airline raised the price of a first checked bag from US$35 to US$40.
The changes extend beyond baggage fees. Beginning on 18 May, AAdvantage elite status members flying on Basic Economy tickets will lose upgrade and seat-selection privileges.
United Airlines
United Airlines increased checked baggage fees by US$10 earlier this year for most domestic and short haul international flights, including routes serving Cayman and the wider Caribbean.
For tickets purchased on or after 3 April, first checked bags cost between US$45 and US$50, while second bags now range from US$55 to US$60.
The sharpest increase came on third checked bags, which rose by US$50 to US$200.
Customers who prepay for baggage at least 24 hours before departure can receive lower pricing, while MileagePlus Premier members continue to receive complimentary checked bags.
United also announced that baggage fee increases would extend to longer-haul international routes beginning 12 May.
Jet Blue
JetBlue raised checked baggage fees in March as fuel prices climbed globally.
For most economy passengers travelling on JetBlue’s Caribbean network, including flights to and from the Cayman Islands, JetBlue Airways now charges US$39 for a first checked bag during off-peak travel periods and US$49 during peak seasons such as summer holidays, up from US$35 and US$40 respectively.
Passengers who pay within 24 hours of departure, including at airport counters, are charged an additional US$10 surcharge.
JetBlue said the higher baggage fees would help the airline “keep base fares competitive” while continuing to invest in amenities such as complimentary Wi-Fi, seatback entertainment and snacks.
Southwest Airlines
Southwest Airlines increased baggage fees by US$10 in April, less than a year after ending its long-standing ‘bags fly free’ policy that had differentiated the airline for decades.
The airline’s first checked bag fee rose from US$35 to US$45, while second checked bags increased from US$45 to US$55 for bookings made on or after 9 April.
Delta
Delta Air Lines raised checked baggage fees in April as part of what it described as an “ongoing review of pricing”.
Short-haul international passengers, including those flying on Cayman routes, now pay US$45 for a first checked bag, US$55 for a second and US$200 for a third bag – increases of US$10 on the first and second checked bags and US$50 on the third.
In addition to baggage fee increases, Delta recently announced it would eliminate complimentary snacks and drinks on hundreds of flights under 350 miles beginning 19 May.
The increasing price of jet fuel
Rising baggage fees are unfolding against the backdrop of sharply higher fuel costs driven by the conflict in the Middle East.
Henry Harteveldt, president of Atmosphere Research Group, told Barron’s that jet fuel prices have risen by at least 70%, pushing fuel costs from roughly 24% of a typical flight’s operating expenses to as much as 30% to 35%.
“Airlines cannot be expected to absorb all of that high jet fuel cost,” Harteveldt said.
Federal data underscores how important extra baggage and other ancillary fees have become in offsetting those costs.
According to the US Bureau of Transportation Statistics, the 13 largest US airlines collected more than US$5.47 billion in checked baggage fees during the first three quarters of 2025 alone. American Airlines generated nearly US$1.1 billion of that total, while United Airlines brought in roughly US$1.01 billion.
In 2024, US airlines collected more than US$7.27 billion in baggage fees, underscoring how charges once considered secondary have become a central and increasingly lucrative part of the airline business model.
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