Delta’s Rising Bag-Check Charge in Euros Shows Dollar’s StrengthMichael Sasso
Your luggage’s ride in Delta Air Lines cargo holds got a bit pricier this month, when the carrier boosted its baggage fees for transatlantic flights.
Chalk up the increase to the euro’s slide against the dollar.
People paying with the European Union currency will see about a 20 percent hike in the cost of checking a second and additional bags on trips across the Atlantic. The rate increase only holds for travel originating in Europe, and people paying in dollars won’t see a change.
Seeing a positive where travelers may not, Hunter Keay, Wolfe Research analyst based in New York, said in a note Friday, “It’s good to see (Delta) conclude that it has that type of pricing power despite weaker currencies.”
On Feb. 10, Atlanta-based Delta Air Lines Inc. raised the price of a second checked bag on transatlantic flights from 70 euros ($79.52) to 85, while the rate for the third through 10th pieces increased from 200 euros to 240. The first bag flies free on transatlantic flights, spokesman Paul Skrbec said by e-mail.
The airline made the change “to align currency due to exchange rates,” Skrbec said. Since May 6, the euro’s value has fallen from about $1.39 to $1.14.
In 2012, Delta and United Continental Holdings Inc. each boosted their international baggage fees to their current level of $100 for a second bag.