American Airlines Raises Checked Bag Fees and Tightens Basic Economy Rules
The carrier joins industry-wide fee hikes as rising jet fuel costs impact airline profitability
Quick Look
- American Airlines has increased checked bag fees for domestic and short-haul international flights, with additional surcharges for basic economy passengers.
- The move follows similar hikes by major U.S. carriers amid rising jet fuel costs.
AI-generated summary
Why It Matters
Airlines are facing increased operational costs due to rising jet fuel prices, which are the second-largest expense for carriers after labor.
American Airlines joined other airlines in raising its bag fees Thursday, but the luggage will be even more expensive for customers who buy basic economy tickets.
United Airlines, JetBlue Airways, Delta Air Lines and Southwest Airlines have all hiked the fee to check a bag in the past two weeks as the industry grapples with a jump in jet fuel expenses from the war in the Middle East.
American is raising the cost more for its no-frills option, while the other airlines had across-the-board increases.
The airline will hike the fee by $10 to check a first piece of luggage at the airport on domestic or short-haul international flights starting with tickets booked Thursday. That brings the price for one bag to $50, and a second bag will cost $60 for most tickets. There's a $5 discount for checking a bag on American's website or app, making the prices $45 and $55, respectively.
Customers with a basic economy ticket, meanwhile, will have to pay $55 for their first checked bag and $65 for a second bag starting with tickets purchased on May 18. The $5 online discount also applies to those fees, bringing the prices to $50 and $60, respectively, for those who pay in advance.
All customers in basic economy, even those with status, will also have to pay to pick a seat starting on May 18 and will not be eligible for complimentary and system-wide upgrades.
Airline executives have said travel demand is still high, but it's not clear that carriers will be able to cover the entirety of the fuel price run-up. The effective closure of the Strait of Hormuz is choking off supplies of both crude and refined products like jet fuel, further driving up the price.
Jet fuel is airlines' second-biggest cost, coming after labor.
Meanwhile, airlines have been leaning into premium offerings and making their basic fares more restrictive as the growth from higher-end options outpaces sales from regular economy. American has fallen behind large rivals Delta and United in seeking out luxury customers, profit and more.
What to Watch
AI outlook — possibilities, not facts
Other major airlines may introduce similar tiered pricing structures for basic economy tickets.
Likely · Within months
Open Questions
- Will other airlines follow American's specific tiered pricing for basic economy?
- How will consumer demand respond to these specific fee increases?
