Delta is taking a very controversial page out of American's playbook
Following a similar move by American, Delta is raising the price of its checked luggage.
TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Wednesday, March 6.
Full Video Transcript Below:
J.D. DURKIN: I'm J.D. Durkin, reporting from the New York Stock Exchange. Stocks were in the green to close out today's session. The Dow closed up 76 points, the Nasdaq closed up over half a percent, and the S&P also closed half a percent higher. This comes as investors continue to digest comments from Fed Chair Jerome Powell after he reiterated that it's still too soon to cut interest rates.
In other news, Delta is now the latest airline to increase the price of checking a bag. The company announced travelers will see a five-dollar hike when checking a bag, bumping up the price from $30 to $35. A second bag will now cost $45 — also a five-dollar increase from the previous cost. Customers with Delta perks, like SkyMiles Medallion members, and those with first-class tickets will continue to be able to check bags for free.
Delta is the third major U.S. airline to raise baggage fees in the past several weeks. Both United and American Airlines announced in February that they would be increasing fees after previous announcements from JetBlue and Alaska Airlines.
According to the Department of Transportation, in the first nine months of 2023, U.S. airlines brought in $5.5 billion from baggage fees, a 9 percent year-over-year increase. In 2022 - the last full year for which totals are available - Delta brought in $979 million from baggage fees.
That'll do it for your daily briefing. From the New York Stock Exchange, I'm J.D. Durkin with TheStreet.
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