Business
Packing up: Baggage fees for major airlines are set to rise

Packing up: Baggage fees for major airlines are set to rise

Bags secured

Bad news just landed if traveling light isn’t exactly your forte: American Airlines, Alaska Airlines, and low-cost carrier JetBlue Airways have all announced that they’re raising baggage fees this year, with others predicted to follow.

The price hikes are landing in the $5-10 zone across a range of both domestic and international flights, with American Airlines explaining that the raises are a result of “inflation, fuel costs, and increased operating costs” in a statement to Newsweek on Wednesday.

Let’s unpack…

In the last 15 years, airlines have increasingly leaned on baggage charges as an opportunity to cash in. Data from the Bureau of Transportation Statistics reveals that US airlines raked in a total ~$6.8 billion in baggage fees in 2022, with 2023 figures tracking even higher over the first 9 months of the year —15 years ago, BTS attributed just $1.1 billion to baggage fees.

Of course, not all airlines lump costly luggage fees onto customers. Southwest and its famously generous 2-bags-free policy, for example, made just $66m in bag revenue for 2022 from more than 157 million passengers. Meanwhile, "lower cost" carriers like Frontier and Spirit made $745m and $933m, respectively, from less than 65 million passengers between them.

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Report: OpenAI won’t pay a dime in cash for its 3-year licensing deal for Disney IP

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The deal will reportedly see OpenAI pay zero dollars in licensing fees, instead compensating Disney in stock warrants. It was previously reported that Disney would invest $1 billion into OpenAI as part of the agreement.

It’s very abnormal for Disney to grant anyone access to its massive IP library without a cash payment, and the entertainment juggernaut has been known to strike down even crocheted Etsy Yodas for infringing on its turf. In its fiscal year 2025, Disney booked more than $10 billion in revenue from licensing fees across merchandising, television, and theatrical distribution.

It’s very abnormal for Disney to grant anyone access to its massive IP library without a cash payment, and the entertainment juggernaut has been known to strike down even crocheted Etsy Yodas for infringing on its turf. In its fiscal year 2025, Disney booked more than $10 billion in revenue from licensing fees across merchandising, television, and theatrical distribution.

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Ford says it will take $19.5 billion in charges in a massive EV write-down

The EV business has marked a long stretch of losing for Ford, and today the automaker announced it will take $19.5 billion in charges tied, for the most part, to its EV division.

Ford said it’s launching a battery energy storage business, leveraging battery plants in Kentucky and Michigan to “provide solutions for energy infrastructure and growing data center demand.”

According to Ford, the changes will drive Ford’s electrified division to profitability by 2029. The company will stop making its electric F-150, the Lightning, and instead shift to an “extended-range electric vehicle” that includes a gas-powered generator.

The Detroit automaker also raised its adjusted earnings before interest and taxes outlook to “about $7 billion” from a range of $6 billion to $6.5 billion.

Ford’s write-down is one of the largest taken by a company as legacy automakers scale back on EVs, giving EV-only automakers a market share boost.

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