The era of the "first checked bag fee" for major legacy carriers began in May 2008, led by American Airlines. Before this, most full-service airlines included at least one or two checked bags in the price of a standard ticket. The shift was triggered by the 2008 global financial crisis and skyrocketing jet fuel prices, which reached nearly $150 per barrel. By "unbundling" the ticket price, airlines could keep their base fares competitive while generating new "ancillary revenue." Other major carriers like United, Delta, and US Airways quickly followed suit within months. While budget carriers like Spirit and Allegiant had been charging for bags since 2007, American's move was a watershed moment for the industry. In 2026, these fees have become a massive profit center, generating billions of dollars annually for airlines. Southwest Airlines remains the most notable "holdout" in 2026, famously maintaining its "Bags Fly Free" policy for the first two checked suitcases, a strategy they use as a major marketing differentiator against their legacy and low-cost competitors who now charge for almost every "extra" service.