American Airlines raises baggage fees, limits miles for travel agency bookings


An American Airlines plane sits at the gate of Cancun International Airport on May 26, 2023.

Daniel Delgado | AFP | fake images

american airlines has raised the price to check a bag for the first time in more than five years and said it would limit which travel agency bookings are eligible to earn frequent flyer miles.

Passengers will pay $35 to check a first bag for domestic flights if the service is booked online in advance, or $40 if they purchase the option at the airport, the airline said Tuesday. Both options previously cost $30. A second checked bag will cost $45, down from $40 whether purchased in advance or at the airport.

Travelers' first checked bag on flights between the United States and Canada, the Caribbean or Mexico will be $35, either in advance or at the airport.

American Airlines last raised baggage fees in September 2018 along with other major airlines. Carriers are looking for ways to increase revenue as airfares declined over the past year. The latest inflation report showed airfares fell more than 6% in January from a year earlier.

“Our cost of carrying bags is significantly higher” in recent years, said Scott Chandler, American's senior vice president of revenue and loyalty management. “Fuel is an important component.”

Airlines and other companies have been debating how to cover higher costs, such as new labor contracts, while pricing power has declined.

Other airlines have also recently increased baggage fees. This year, Alaska Airlines increased the fee for economy class passengers to check bags by $5 to $35 for a first bag and $45 for a second bag. JetBlue Airways began charging most bus travelers $45 to check a bag within 24 hours of departure, up from $40. Upfront, JetBlue now charges $35 for the first bag.

“While we don't like raising fares, it is a step we are taking to return our business to profitability and cover the increased costs of carrying bags,” JetBlue said in a statement. “By adjusting rates for additional services that only certain customers use, we can keep base rates low and ensure that customer favorites, like seatback TVs and high-speed Wi-Fi, remain free for all”.

united airlines and Delta Airlines declined to comment Tuesday on possible changes to its policies.

In the first nine months of 2023, U.S. airlines collected $5.5 billion in baggage fees, including more than $1 billion from American alone. The total was up 9% from the year-earlier period and more than 25% from the first nine months of 2019, according to the latest data from the Department of Transportation.

American frequent flyer members with elite status and some American Airlines credit cardholders will continue to receive a complimentary checked bag, it said Tuesday in announcing the changes.

The Fort Worth, Texas-based airline is also reducing fees for slightly overweight bags, so travelers will no longer have to frantically remove items from their bags at the check-in counter. For example, customers will pay a $30 fee for checked bags up to three pounds over the 50-pound limit, instead of the previous $100 fee.

American also said Tuesday that it will begin limiting which tickets purchased through a third party are eligible to earn AAdvantage frequent flyer miles, a move aimed at driving traffic to American's website and the latest in a series of changes to the program. . It said it will provide a list in April of preferred travel agencies whose reservations will still be eligible for the reward credits.

Customers who purchase basic economy tickets will only earn frequent flyer miles if they book on the American Airlines website.

Don't miss these CNBC PRO stories:

scroll to top