United Airlines raises checked bag fees amid rising fuel costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
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Should l Buy UAL?
Source: Newsfilter
United Airlines Holdings Inc. saw its stock rise by 9.98% in pre-market trading, reaching a 20-day high.
The increase in stock price comes as United Airlines announced a hike in checked bag fees, with the first bag fee set at $45 if prepaid and $50 if purchased within 24 hours of the flight. This move reflects the airline's response to soaring fuel costs, which have surged by 80% since the U.S. and Israel's attack on Iran on February 28. The airline's fee increase aligns with a broader trend in the industry, as other carriers like JetBlue have also raised their fees due to similar pressures.
This fee adjustment indicates United's strategy to manage rising operational costs while maintaining customer segments through targeted discounts for certain travelers. The airline's proactive measures may help mitigate the impact of fuel price volatility on its financial performance.
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Analyst Views on UAL
Wall Street analysts forecast UAL stock price to rise
16 Analyst Rating
15 Buy
1 Hold
0 Sell
Strong Buy
Current: 98.910
Low
115.00
Averages
139.07
High
156.00
Current: 98.910
Low
115.00
Averages
139.07
High
156.00
About UAL
United Airlines Holdings, Inc. is a holding company. The Company transports people and cargo throughout North America and to destinations in Asia, Europe, Africa, the Pacific, the Middle East and Latin America. The Company, through United Airlines, Inc., and its regional carriers, operates across over six continents, with hubs at Chicago O'Hare International Airport (ORD), Denver International Airport (DEN), George Bush Intercontinental Airport (IAH), Los Angeles International Airport (LAX), Newark Liberty International Airport (EWR), San Francisco International Airport (SFO), Washington Dulles International Airport (IAD) and A.B. Won Pat International Airport (GUM). Its hub and spoke system allow it to transport passengers between a large number of destinations with frequent services. The Company has contractual relationships with various regional carriers to provide regional aircraft service branded as United Express. It provides freight and mail transportation services (Air Cargo).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Beat: The airline reported a non-GAAP EPS of $1.19, beating expectations by $0.11, with revenue of $14.61 billion exceeding forecasts by $230 million, indicating the company's resilience in challenging conditions.
- Market Reaction: Despite the strong earnings report, the market remains cautious about United Airlines' future performance due to fuel cost pressures, which could affect its stock price and investor sentiment.
- Industry Challenges: The rising fuel costs and geopolitical risks facing the airline industry may create greater uncertainty for United Airlines' operations in the future, impacting its competitive position and profitability.
See More
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- Ceasefire Extension: President Trump has extended the Iran ceasefire deadline by two weeks, a move that may exacerbate uncertainty in the Middle East conflict as Tehran shows reluctance to engage in diplomatic efforts, potentially impacting global market sentiment.
- Tariff Policy Impact: Trump expressed hope that U.S. companies that have not sought refunds for his tariffs will adhere to a 'no take back' policy, despite the Supreme Court ruling the tariffs illegal; major firms like Apple and Amazon have yet to file for refunds, which could affect their future financial performance.
- Market Reaction: Following Trump's announcement of the ceasefire extension, U.S. stock index futures rose, despite a lower close on Tuesday, while crude oil prices increased, indicating market sensitivity to developments in the Middle East.
- Aviation Industry Outlook: United Airlines has slashed its 2026 earnings outlook due to supply chain issues stemming from the Middle East conflict, reflecting the direct impact of soaring fuel prices on the airline industry and potentially leading to broader industry adjustments.
See More
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- Flight Schedule Adjustments: To manage rising fuel costs, United plans to fly about 5% less in 2026, resulting in flat total capacity in the third and fourth quarters compared to last year, with potential for further flight cuts or additions based on customer demand.
- Market Opportunities: Despite uncertainties, CEO Scott Kirby expressed optimism that changes in the airline industry could create opportunities for United, reiterating the company's commitment to future growth.
See More
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- Ceasefire Extension: President Trump has extended the ceasefire with Iran following a stock market decline due to canceled talks, aiming to stabilize market sentiment and prevent further geopolitical tensions.
- Market Reaction: The stock market's drop reflects investor uncertainty regarding future economic and political conditions, and Trump's decision may help restore confidence among investors.
- Tesla Earnings Upcoming: Amid this backdrop, Tesla is set to release its earnings report, which is expected to significantly impact the stock market, particularly in the current unstable economic environment.
- Geopolitical Implications: Trump's decision to extend the ceasefire not only adjusts U.S. policy towards Iran but may also affect diplomatic relations with other countries, potentially leading to far-reaching consequences for global markets.
See More
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- Earnings Performance: United Airlines reported solid earnings on Tuesday afternoon, yet lowered its guidance partly due to high jet fuel prices, indicating cost pressures impacting profitability.
- Stock Fluctuations: The stock ticked up slightly after hours, but remains 19% below its January high, although it has risen 12% over the past month, reflecting market confidence in its short-term performance.
- Industry Dynamics: Boeing's shares have dropped 12% in the last three months and are 14% off their 52-week high, highlighting concerns in the aerospace manufacturing sector.
- Dividend Yield: AT&T offers a quarterly dividend of 28 cents per share, yielding 4.29%, and despite a 13% decline since its September peak, it continues to attract some investor interest.
See More
