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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GM has reportedly rehired more than 100 former Cruise employees, 18 months after shuttering the robotaxi unit

GM has rehired more than 100 employees it let go early last year when it shuttered Cruise, its former robotaxi business, according to reporting by The Information.

The hiring spree, which also includes employees from Nvidia and Uber, is geared toward ramping up GM’s plans for personal-use self-driving vehicles and not robotaxis. The former had been the focus of Cruise, prior to GM shuttering it in 2024.

Reporting last fall revealed that GM was attempting to rehire some former Cruise employees, but the scope of that effort wasn’t clear. More than 1,000 employees were laid off when the automaker scrapped Cruise, which it invested $10 billion into.

Google’s Waymo, Cruise’s former chief rival, is now worth $126 billion after a $16 billion funding round earlier this year. The company says it’s serving 500,000 paid robotaxi rides per week in the US.

Reporting last fall revealed that GM was attempting to rehire some former Cruise employees, but the scope of that effort wasn’t clear. More than 1,000 employees were laid off when the automaker scrapped Cruise, which it invested $10 billion into.

Google’s Waymo, Cruise’s former chief rival, is now worth $126 billion after a $16 billion funding round earlier this year. The company says it’s serving 500,000 paid robotaxi rides per week in the US.

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