Plus   Neg

American Airlines Joins Rivals In Raising Baggage Fees


American Airlines Inc. (AAL) has joined its major rivals in raising baggage fees as the airline industry grapples with higher fuel costs and rising operating expenses.

The largest U.S. airline said Thursday it is raising the price of a first and second checked bag by $5 each. The price of a first checked bag is now $30, while it is $40 for a second checked bag.

The change in baggage price is being implemented for tickets purchased beginning Friday, September 21, for travel in the U.S. and other North America and Caribbean destinations. The price hike is applicable for travel in the U.S., Canada, Puerto Rico and U.S. Virgin Islands.

However, the previous bag fees will apply for tickets purchased prior to this change, the airline noted. Certain American Airlines' customers will continue to be eligible for free checked bags, including the elite status AAdvantage members.

This is the first time American Airlines has raised its domestic checked bag fees since 2010.

Other U.S. airlines like Delta Air Lines, United Continental Holdings and JetBlue Airways have also raised their baggage fees recently.

United announced new prices for its checked bag fees on August 31, while Delta followed suit a few weeks later. In addition, Alaska Airlines and JetBlue have increased their date-change fees.

The price increases by the airlines come as lawmakers consider asking the U.S. Department of Transportation to assess whether airline baggage and ticket change fees are reasonable.

According to data provided by the Bureau of Transportation Statistics, major U.S. airlines have collected $2.36 billion in baggage fee revenue during the first half of 2018.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Shares of General Electric Co. are rising more than 10 percent on Thursday after the industrial conglomerate said it plans to establish a new, independent company focused on building a comprehensive Industrial Internet of Things or IIoT software portfolio. In addition, longtime bearish analyst Stephen Tusa of J.P. Morgan upgraded shares of GE to neutral. Apple Inc. said Thursday that it will invest $1 billion to build a new corporate campus in North Austin that will eventually create 15,000 jobs. Further, the tech giant announced plans to establish new offices and expand to over 1,000 employees each in three cities - Seattle, San Diego and Culver City, California. In January, Apple said it will create over 20,000 jobs over the next five years. German telecom giant Deutsche Telekom, Chinese conglomerate Alibaba's Alibaba Cloud, banking giant Citi and 13 other organizations have joined Hyperledger Blockchain project, an open source collaborative effort aimed to advance cross-industry blockchain technologies. Hyperledger, a project of The Linux Foundation that started less than three years ago, is a multi-project.
Follow RTT