American Airlines has announced an increase in bag fees for the first time in over five years. The airline stated that the price hike is necessary to cover the escalating costs associated with transporting luggage and to navigate the challenges posed by declining airfare revenue.
Effective immediately, passengers flying with American Airlines will see adjustments in their baggage fees. Checking a first bag for domestic flights will now cost $35 if booked online in advance, up from the previous $30. The same service purchased at the airport will incur a $40 fee. Similarly, the cost for checking a second bag has been raised to $45 from $40, regardless of whether it is purchased in advance or at the airport.
For flights between the U.S. and Canada, the Caribbean, or Mexico, the fee for the first checked bag will be $35, maintaining consistency with domestic flight charges.
Scott Chandler, American Airlines’ Senior Vice President of Revenue Management and Loyalty, attributed the fee increase to the significant rise in the cost of transporting bags, particularly due to factors like increased fuel expenses. This move follows similar adjustments made by other major airlines, indicating a broader trend within the industry to bolster revenue streams amidst challenging economic conditions.
Baggage fees have become a significant source of revenue for airlines, with U.S. carriers collectively earning $5.5 billion from such fees in the first nine months of 2023 alone, according to data from the Transportation Department.
American Airlines assured its frequent flyer members with elite status and select credit card holders that they would still receive a complimentary checked bag. Additionally, the airline announced a reduction in fees for slightly overweight bags, providing relief to travelers who previously faced steep penalties for exceeding weight limits.
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