Airline Bag Fees Ulterior Motive 4/13/26

Summary

Podcast Summary: Your Money Minute – "Airline Bag Fees Ulterior Motive" (April 13, 2026)

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Episode Overview

In this concise episode of "Your Money Minute," CNBC’s Jessica Ettinger explores the real reasons behind recent increases in airline baggage fees. Featuring insights from CNBC aviation reporter Leslie Josephs, the episode goes beyond the headlines, uncovering the airlines' strategic motives—namely, encouraging credit card sign-ups and adapting to spiking operational costs. The discussion highlights how jet fuel prices and industry competition factor into what travelers pay today, offering a sharp look at shifting travel economics in just one minute.

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Key Discussion Points & Insights

1. Baggage Fees: The Latest Hike

• JetBlue’s Move: JetBlue initiated the most recent wave of baggage fee increases among major U.S. airlines.
  • “JetBlue was the first of the major US airlines. It raised its baggage fees. Passengers if they want to check a bag it would start at about $39 and even more than that at peak periods.” – [00:11], Leslie Josephs

2. Why Raise Bag Fees Publicly?

• Strategic Transparency: Instead of quietly raising fees, airlines made these hikes public, and there’s a reason.
• Credit Card Push: The overt announcement encourages travelers to sign up for airline-branded credit cards, which often waive checked bag fees for cardholders.
  • “Airlines have been pushing people to get their co branded credit cards with Amex, with Chase, you know, some of the other banks and this is one of the ways that you can get around these baggage fees.” – [00:35], Leslie Josephs
  • “So you pay a fee to the credit card company every year and that would often comes with a first free check bag, at least for that passenger, sometimes with their travel companions as well, depending on what kind of card you have.” – [00:47], Leslie Josephs

3. Airfares Quietly Climbing

• Fare Increases Not Advertised: Airlines are also raising ticket prices, but do so less transparently than with baggage fees.
  • “Now the airlines of course are raising airfares without any specific price announcement, though across the board they're not saying all plane tickets are now say 20% more…” – [01:01], Jessica Ettinger
• Drivers of Price Increases: The U.S. war with Iran has doubled jet fuel prices year-to-date, directly contributing to airfare increases of up to 20%, varying by route and aircraft type.
  • “That pushed up jet fuel prices which by the way have doubled year to date. But airfares are going up by as much as 20% depending on the route and the plane.” – [01:14], Jessica Ettinger

4. Impact on Travelers & Industry Trends

• Travel Choices and Economic Pressure: As airline costs rise across baggage and ticket prices, there’s a looming question about when families might switch from flying to driving. The deterrent is softened by four-year-high gas prices, complicating travel budgeting for consumers.
  • “The question is when will airfares get so high that families decide to do summer road trips instead of flying with gas prices at their highest in four years?” – [01:26], Jessica Ettinger

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Notable Quotes & Moments

• “JetBlue was the first of the major US airlines. It raised its baggage fees. Passengers if they want to check a bag it would start at about $39 and even more than that at peak periods.” – Leslie Josephs [00:11]
• “Airlines have been pushing people to get their co branded credit cards with Amex, with Chase… and this is one of the ways that you can get around these baggage fees.” – Leslie Josephs [00:35]
• “Now the airlines of course are raising airfares without any specific price announcement, though across the board…” – Jessica Ettinger [01:01]
• “The question is when will airfares get so high that families decide to do summer road trips instead of flying with gas prices at their highest in four years?” – Jessica Ettinger [01:26]

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Important Segments & Timestamps

• JetBlue’s New Bag Fees – [00:11]
• Airlines’ Credit Card Strategy – [00:35]
• Rising Airfares/Jet Fuel Impact – [01:01]
• Shifting Consumer Travel Decisions – [01:26]

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For more information on travel pricing and personal finance tips, visit cnbc.com.

Transcript

[A]

With a CNBC you money minute, I'm Jessica Ettinger. Airlines are raising all kinds of prices when it comes to bag fees. JetBlue started it all and was very specific.

[B]

JetBlue was the first of the major US airlines. It raised its baggage fees. Passengers if they want to check a bag it would start at about $39 and even more than that at peak periods. CNBC aviation reporter

[A]

Leslie Josephs knows why the airlines chose to hit bag fees and boldly announced they were going up inst instead of trying to quietly sneak those increases by customers. It's

[B]

because they're selling credit cards. Airlines have been pushing people to get their co branded credit cards with Amex, with Chase, you know, some of the other banks and this is one of the ways that you can get around these baggage fees. So you pay a fee to the credit card company every year and that would often comes with a first free check bag, at least for that passenger, sometimes with their travel companions as well, depending on what kind of card you have.

[A]

Now the airlines of course are raising airfares without any specific price announcement, though across the board they're not saying all plane tickets are now say 20% more because of the US war with Iran that pushed up jet fuel prices which by the way have doubled year to date. But airfares are going up by as much as 20% depending on the route and the plane. The question is when will airfares get so high that families decide to do summer road trips instead of flying with gas prices at their highest in four years? There's more on travel [e-mail] I'm Jessica Ettinger, CNBC.

[C]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Landsford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and [e-mail] Market Update podcast or find Schwab Market Update wherever you get your podcasts.