An American Airlines plane sits on the gate at Cancun International Airport on May 26, 2023.
Daniel Slim | AFP | Getty Images
American Airlines has raised the value to examine a bag for the primary time in greater than five years and said it could limit which travel agency bookings are eligible to earn frequent flyer miles.
Passengers can pay $35 to examine a primary bag for domestic flights if the service is booked online prematurely, or $40 in the event that they purchase the choice on the airport, the carrier said Tuesday. Each options previously cost $30. A second checked bag will cost $45, up from $40, whether purchased prematurely or on the airport.
Travelers’ first checked bag on flights between the U.S. and Canada, the Caribbean or Mexico can be $35 whether prematurely or on the airport.
American Airlines last raised bag fees in September 2018 together with other major airlines. Carriers are searching for ways to extend revenue as airfare has declined over the past yr. The last inflation report showed airfare fell greater than 6% in January from a yr earlier.
“Our cost of transporting bags is significantly higher” over the past few years, said Scott Chandler, American’s senior vice chairman of revenue management and loyalty. “Fuel is an enormous component of it.”
Airlines and other firms have been grappling with the way to cover higher costs, reminiscent of latest labor contracts, while pricing power has waned.
Other airlines have also recently raised bag fees. This yr, Alaska Airlines increased the charge for economy passengers to examine bags by $5 to $35 for a primary piece and $45 for a second bag. JetBlue Airways began charging most coach travelers $45 to examine a bag inside 24 hours of departure, up from $40. Upfront, JetBlue is now charging $35 for the primary bag.
Passengers check in for an American Airlines flightsat O’Hare International Airport on October 11, 2022 in Chicago, Illinois.
Scott Olson | Getty Images
“While we don’t love increasing fees, it’s one step we’re taking to get our company back to profitability and canopy the increased costs of transporting bags,” JetBlue said in an announcement. “By adjusting fees for added services that only certain customers use, we are able to keep base fares low and ensure customer favorites like seatback TVs and high-speed Wi-Fi remain free for everybody.”
United Airlines and Delta Air Lines declined to comment Tuesday on potential changes to their policies. Southwest Airlines offers passengers two free checked bags.
In the primary nine months of 2023, U.S. airlines brought in $5.5 billion from baggage fees — including greater than $1 billion by American alone. The entire was up 9% from the year-earlier period, and up greater than 25% from the primary nine months of 2019, in line with the Transportation Department’s latest data.
American’s frequent flyer members with elite status and a few American Airlines bank card holders will still receive a complimentary checked bag, it said Tuesday in announcing the changes.
The Forth Price, Texas-based airline can be reducing fees for barely obese bags, so travelers will now not should frantically remove items from their suitcases on the check-in counter. For instance, customers can pay a fee of $30 on checked bags which might be as much as three kilos over a 50 pound limit, as a substitute of the previous $100 fee.
American also said on Tuesday that it is going to start limiting which tickets purchased through a 3rd party are eligible to earn AAdvantage frequent flyer miles, a move that goals to drive traffic to American’s website and the most recent in a series of changes to this system. It said it is going to provide a listing in April of preferred travel agencies whose bookings will still be eligible for the rewards credits.
Customers who buy basic economy tickets will only earn frequent flyer miles in the event that they book on American Airlines’ website.
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