After nearly every domestic air carrier in the United States raised its baggage fees in September, Honolulu-based Hawaiian Airlines has officially followed suit on flights that it operates between Hawaii and the mainland.
Staring late this week, the first checked and second checked bags on Hawaiian Airlines will go up in price from $35 to $40. Third checked bag fees on the carrier will remain at $100 without any changes.
In making the hikes, Hawaiian joins a long list of domestic air carriers that moved prices up nearly in lock step through late summer. JetBlue started the bloodletting in Late August with the announcement that, citing increased fuel costs, it needed to raise baggage fees. Shortly after that, United, American and Delta followed in order – all with the same justification.
Hawaiian, in turn, made no complaints about tighter market conditions and simply pointed out in its release that its baggage fees had been unchanged since 2012. It's assumed, however, that higher operating costs (namely from the price of jet fuel, which is up 40% from this time last year) and competitive pressure from legacy air carriers, which have already been raking in the higher fees this fall, helped Hawaiian make its choice.
Indeed, airlines have been increasingly relying on profits from ancillary fees as a crutch for boosting profitability. According to IdeaWorks, a company that tabulates and analyzes airfare data, in 2017 airlines pulled in as much as $5.7b in ancillary revenue from fees ranging from checked bag fees to on board seat selection, drinks and snacks. As that reliance continues to grow, profits from check bag fees will become an even more important factor for airlines and their overall profitability. WOW Air and Hong Kong Express, for example, two low cost carriers heavily reliant on ancillary fees, made almost 66% of their 2017 annual ancillary profits from checked bags.
One exception to Hawaiian's fee hikes is for intra-island flights. Those bag fees will remain at $25 for the first checked bag and $35 for the second. Members of Hawaiian's frequent flyer program will also get the discounted rate of $15 for the first bag and $20 for the second, while co-branded credit card holders will still get the first checked bag for free.
Hawaiian's new baggage fees went into effect as of the company's announcement earlier this week.
