Delta Air, Southwest Airlines hike checked baggage fees as jet fuel prices soar

April 7 (Reuters) - Delta Air Lines DAL.N and Southwest Airlines LUV.N said on Tuesday they would raise fees for checked bags, as carriers seek to offset soaring jet fuel costs linked to escalating tensions in the Middle East.

The global aviation sector has been grappling with higher fuel prices, which have driven up operating costs and squeezed margins, after tensions in the Middle East disrupted the Strait of Hormuz - a key oil shipping corridor.

Jet fuel, which averaged about $85 to $90 a barrel in February before the Iran war, has surged to around $209 per barrel globally, according to the International Air Transport Association.

Delta and Southwest said fees for first and second checked bags would increase by $10 on new bookings, raising the cost to $45 for the first bag and $55 for the second.

Delta, which plans to apply the fee hikes on domestic and select short-haul international routes, said the fees for a third checked bag will rise by $50 to $200.

Delta will apply the increase to bookings made on or after Wednesday, it said. For Southwest, the changes will take effect for bookings made on or after Thursday.

The increase, which marks the first hike in Delta's domestic baggage fees in two years, follows similar moves by peers United Airlines UAL.O and JetBlue Airways JBLU.O.

Unlike some of its rivals, Delta has a buffer in the form of a subsidiary-owned refinery in Pennsylvania.

The refinery has a capacity of about 190,000 barrels per day that supplies nearly three-quarters of its fuel needs, though it remains exposed to spikes in crude oil prices.

Checked baggage benefits tied to the airline's frequent-flyer programs, premium fares and co-branded credit cards will remain unchanged. Delta said there will be no changes to baggage fees on long-haul international routes.