business

Rani Molla12/20/24

Amazon drone delivery costs customers $9.99 but Amazon a lot more

So far Prime Air has delivered “thousands” of packages in sunny College Station, Texas, and Tolleson, Arizona, where it recently expanded, in less than an hour. It aims to deliver 500 million packages a year by drone in under 30 minutes in 2029, The New York Times reports.

The program costs Prime members $9.99 per delivery ($15 if you’re not a member) but likely costs Amazon a lot more, though the company didn’t specify how “deeply unprofitable” it was. Business Insider reported on internal documents in 2022 that showed the e-commerce company would lose $63 a package in 2025.

For now the program can only deliver one item at a time and only during the day. It’s noisy and the drones require 3 square meters of open space where they can hover in and drop the delivery.

Amazon Has Overhauled Its Drone Delivery. Will the Public Welcome It?

Amazon Has Overhauled Its Drone Delivery. Will the Public Welcome It?

The program costs Prime members $9.99 per delivery ($15 if you’re not a member) but likely costs Amazon a lot more, though the company didn’t specify how “deeply unprofitable” it was. Business Insider reported on internal documents in 2022 that showed the e-commerce company would lose $63 a package in 2025.

For now the program can only deliver one item at a time and only during the day. It’s noisy and the drones require 3 square meters of open space where they can hover in and drop the delivery.

More Business

See all Business

Capsule Pill and Dots

Justice Department accuses telehealth Zealthy of fraud, says remedy may bankrupt it

The feds say they don’t think Zealthy has the liquidity to pay what it owes customers.

J. Edward Moreno4/14/26

Hyunsoo Rim, J. Edward Moreno

Americans aren’t drinking as much Mexican beer — that’s not been good for Constellation

The nation’s largest beer importer by sales just saw a 10-year growth streak come to an abrupt end.

Constellation beer brands

Netflix playground

Will investing in kids games finally make Netflix Games “the Netflix of games”?

Netflix is launching a game for preschoolers, its latest foray into stuff-you-play instead of stuff-you-watch.

Claire Yubin Oh4/10/26

business

Max Knoblauch4/9/26

American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

American Airlines updates bag fees and Basic Economy fares

American Airlines updates bag fees and Basic Economy fares

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

business

Max Knoblauch4/9/26

Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

Three US airlines have already hiked baggage fees. More are likely on the way.

Three US airlines have already hiked baggage fees. More are likely on the way.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.

©2026 Sherwood Media, LLC