The modern era of checked baggage fees began in May 2008, when American Airlines became the first major U.S. carrier to charge a domestic fee for the first checked bag (initially $15). This monumental shift was a response to the "Great Recession" and soaring jet fuel prices, which topped $140 per barrel that year. Before 2008, two checked bags were typically included in the price of an economy ticket. Following American's lead, United, Delta, and Continental quickly implemented similar fees to "unbundle" their pricing. By 2026, these fees have become a massive revenue stream, generating billions of dollars annually for the industry. While low-cost carriers like Ryanair in Europe had been charging for bags since the late 1990s, the 2008 move by American Airlines forever changed the expectations for North American flyers. Today, Southwest remains the only major U.S. airline to maintain a "Bags Fly Free" policy, allowing two checked bags at no extra cost, which they use as a primary marketing tool to differentiate themselves from the "legacy" carriers.