business

J. Edward Moreno12/9/24

Rent the Runway slips after another unfashionable quarter

Rent the Runway is so last season, at least on Wall Street.

The fashion subscription service reported earnings on Monday that were in line with analysts’ estimates, but that didn’t stop investors from selling off, sending its stock down more than 20%. It’s now down more than 97% from where it was trading after its 2021 initial public offering.

Rent the Runway’s revenue has been virtually flat since 2022, bouncing under $80 million each quarter. Rent the Runway, which has been around since 2009, has never reported a profitable quarter and has swelling debt.

The economics of a fashion subscription service are tricky given the high costs of operation. But while Rent the Runway has been flailing, Urban Outfitters introduced its own competitor in 2019, Nuuly, that appears to be beating the legacy company at its own game.

Nuuly has gone from making $2 million in revenue in 2019 to over $97 million in its most recent quarter. According to Urban Outfitters, Nuuly has been profitable since November 2023.

While things aren’t looking great for Rent the Runway, it is losing less money than it used to. So far this year, it has reported a net loss of $56.5 million. That’s actually an improvement, considering it hemorrhaged $113 million last year and even more than that each year since at least 2021, when it launched its IPO.

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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.

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