Customer holding a Starbucks coffee cup in hand

(Zhang Peng/Getty Images)

Starbucks wants to give you a “mug hug”

The word "mug" was said a record number of times on Starbs’ latest earnings call.

1/29/25 2:09PM

A vibe shift is underway at Starbucks, and so far investors seem into it.

Starbucks stock is up more than 8% after the company reported better-than-expected earnings on Tuesday in its first full quarter under the leadership of its new CEO, Brian Niccol. His vision for the ubiquitous corporate coffee chain is a more homey, relaxing coffeehouse where customers can lounge instead of just picking up.

Niccol has made a few changes to push that vision, including cutting the “overly complex” menu by 30%, bringing back condiment bars, free refills, and cutting the vegan-milk tax. It's also instituting a no-loitering policy that's meant to encourage paying customers to see Starbucks as a “third place” where they can sit down and relax instead of just picking up.

Perhaps most important, they're bringing back ceramic mugs.

Like the thing I was most excited about is, this morning, I swung by one of our stores with this pilot and there was no congestion at the counter. And what was also really nice is the in-cafe customer, I love this term we have around here, they ask for their for here cup, and they're like, we call it a mug hug, right? They're like holding on to that ceramic mug and they're enjoying their moment in the cafe, and there's not all this congestion surrounding the counter. So, it's just a much more pleasant, peaceful, coffee experience.
– Brian Niccol, CEO of Starbucks

The word “mug” was said four times in the company's Tuesday-afternoon earnings call, marking a record for the coffee giant.

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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.

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

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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.