American Airlines has announced a hike in baggage fees, marking the first increase in over five years, and introduced new restrictions on earning frequent flyer miles for tickets purchased through certain travel agencies.The move is seen as an effort to boost revenue amid declining airfares and rising operational costs.
The changes in baggage fees are set to affect passengers across various routes, with the first checked bag on domestic flights now costing $35 if booked online in advance and $40 if purchased at the airport, up from the previous $30. The cost for a second checked bag has also been raised to $45. For flights between the U.S. and destinations including Canada, the Caribbean, and Mexico, the first checked bag will cost $35 regardless of the purchase method.
In a departure from industry norms, American Airlines is also adjusting fees for overweight bags, reducing the charge for bags up to three pounds over the 50-pound limit from $100 to $30, potentially easing the check-in process for passengers. However, the airline is tightening its frequent flyer program, limiting mileage accrual for tickets bought through certain third-party agencies.
Starting in April, only bookings made through preferred travel agencies listed by American Airlines or directly through the airline's website, particularly for basic economy fares, will be eligible for AAdvantage frequent flyer miles.
These changes come at a time when American Airlines, like many in the industry, faces financial pressures from increased fuel and labor costs. The airline reported a significant drop in net income in the last quarter of 2023 and is looking for ways to improve its financial standing.
The increase in baggage fees brings American Airlines' charges in line with or above those of its major competitors, Delta Air Lines and United Airlines, which currently charge $30 for the first checked bag and $40 for the second on similar routes. The airline's adjustments to baggage and frequent flyer policies reflect a broader industry trend of leveraging ancillary fees and loyalty programs to sustain profitability.
