American Airlines is raising bag fees and changing how customers earn frequent-flyer points

American Airlines is increasing bag fees and encouraging customers to buy tickets directly to earn frequent-flyer points. Bag fees will be $35 online and $40 at the airport. Customers with elite status, premium-class tickets, or an American-brande...

American Airlines is raising the cost of checking bags and it is making other changes to push customers to buy tickets directly from the airline if they want to earn frequent-flyer points.

The airline said Tuesday that checking a bag on a domestic flight will rise from $30 now to $35 online and $40 if purchased at the airport. The fee for a second checked bag will rise from $40 to $45 both online and at the airport.

American last raised bag fees in 2018.


American, based in Fort Worth, Texas, introduced bag fees in 2008 — $15 back then — to cope with the rising cost of jet fuel. Since then, they have become a steady revenue source for most major U.S. carriers. American easily led the industry by raising $1.4 billion in bag fees in 2022, the last year for which U.S. Transportation Department figures are available.

The airline is also raising bag fees by $5 for short international flights including those to Canada, Mexico and the Caribbean — now $35 for the first bag and $45 for the second.

The airline will generally allow customers to check at least one bag free if they hold elite status in American's loyalty program, buy a premium-class ticket or use an American-branded credit card.
ADVERTISEMENT

In January, Alaska Airlines raised its checked-bag fees for most economy passengers from $30 to $35 for a first bag and from $40 to $45 for a second. JetBlue followed this month, raising its fees to $35 and $50.

“Airlines tend to move in herds, so when Alaska recently announced they would be upping their bag fee to $35, there was little doubt other airlines would soon follow,” said Scott Keyes, founder of the travel site Going. “It’s unlikely American will be the last.”

Keyes noted that American's decision to charge customers more if they pay bag fees at the airport instead of when they buy their ticket mimics a tactic used by budget airlines such as Spirit and Frontier.

American will give a break to customers whose bags are slightly overweight or oversized. Instead of being hit with the full extra fee — ranging from $100 to $650 — graduated fees will start at $30 for bags that are no more than 3 pounds (1.36 kg) or three linear inches over the limits.
ADVERTISEMENT

And it is cutting the cost of transferring points between frequent-flyer accounts.

At the same time, American announced that starting with tickets issued on May 1, customers will have to buy tickets directly from the airline or its partner carriers or from preferred online travel agencies if they want to earn points in its AAdvantage loyalty program. The airline said it will list the preferred travel agencies in late April. Corporate travelers won’t be affected.
ADVERTISEMENT

About 60% of American's ticket sales are already made directly through the airline, said Scott Chandler, vice president of revenue management.

The changes are part of a long shift by airlines away from using travel agents — and paying them commissions — and bringing ticket sales in-house.

“The old way of booking a ticket relied on agents having a ton of experience and understanding product attributes,” Chandler said in an interview. “The old technology doesn't let us explain things very well, and it is a little more confusing for customers when we introduce new products.”

Chandler likened it to the way that Amazon.com explains features that it sells on the site.
2024 Bucket List: Top travel destinations for each month of the year
1/13

Watch the northern lights in Norway, Sweden, Finland, Iceland, and Greenland. Avoid Indonesia, Seychelles, and Mauritius for rains.

Watch the northern lights in Norway, Sweden, Finland, Iceland, and Greenland. Avoid Indonesia, Seychelles, and Mauritius for rains.

The Caribbean, Chile and Argentina are perfect, for those interested in visiting the vineyards and hiking trails in Patagonia. Don’t miss Rio de Janeiro’s Carnival in Brazil or Mardi Gras in New Orleans.

The Caribbean, Chile and Argentina are perfect, for those interested in visiting the vineyards and hiking trails in Patagonia. Don’t miss Rio de Janeiro’s Carnival in Brazil or Mardi Gras in New Orle..
Read More

Italy and the other Mediterranean countries start to warm up. Egypt is another great option. Avoid Kenya, Tanzania if you’re looking to do a safari or go to the Devil’s Pool at Victoria Falls.

Italy and the other Mediterranean countries start to warm up. Egypt is another great option. Avoid Kenya, Tanzania if you’re looking to do a safari or go to the Devil’s Pool at Victoria Falls.

The Mediterranean is one of the best places to visit, including islands like Crete, Cyprus, and Malta. The Canary Islands stand out in Europe. Visit Japan for cherry blossoms and The Netherlands for Tulips.

The Mediterranean is one of the best places to visit, including islands like Crete, Cyprus, and Malta. The Canary Islands stand out in Europe. Visit Japan for cherry blossoms and The Netherlands for ..
Read More

Visit Hungary and Italy. The Mediterranean and the beaches in Portugal are also excellent choices. Prague comes to life during its three-week-long Spring Music Festival. Consider Peru to visit Cusco and hike the Inca Trail.

Visit Hungary and Italy. The Mediterranean and the beaches in Portugal are also excellent choices. Prague comes to life during its three-week-long Spring Music Festival. Consider Peru to visit Cusco ..
Read More

The US and Canada both have comfortable temperatures and Canada, specifically, celebrates Canada Day, the Montreal Film Festival, and the International Jazz Festival. Avoid Sub Saharan Africa and the Middle East for recurrent heat waves.

The US and Canada both have comfortable temperatures and Canada, specifically, celebrates Canada Day, the Montreal Film Festival, and the International Jazz Festival. Avoid Sub Saharan Africa and the..
Read More

Europe is at its peak, being the most popular continent for travelers. Anywhere you go the weather will be pretty good, but it can get very crowded. It is the perfect time to hit Indonesia for Bali, East Java & Komodo National Park.

Europe is at its peak, being the most popular continent for travelers. Anywhere you go the weather will be pretty good, but it can get very crowded. It is the perfect time to hit Indonesia for Bali, ..
Read More

Scotland is popular in August thanks to its Edinburgh Fringe Festival. The best nature and outdoor destination in August should go to Kenya with the Great Migration usually starting around the first week of the month.

Scotland is popular in August thanks to its Edinburgh Fringe Festival. The best nature and outdoor destination in August should go to Kenya with the Great Migration usually starting around the first ..
Read More

Germany and Austria are now popular thanks to Octoberfest, which starts at the end of September. Avoid Southeast Asia for monsoons and The Caribbean and Central America as this is the peak of hurricane season.

Germany and Austria are now popular thanks to Octoberfest, which starts at the end of September. Avoid Southeast Asia for monsoons and The Caribbean and Central America as this is the peak of hurrica..
Read More

Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Business News › NRI › Visit › American Airlines is raising bag fees and changing how customers earn frequent-flyer points
Text Size:AAA
Success
This article has been saved

*

+