American Airlines Raises Bag Fees, Limits Miles for Travel Agency Bookings

American Airlines has recently announced an increase in the price of checked bags, marking the first time in over five years. Additionally, the airline will implement restrictions on travel agency bookings eligible for earning frequent flyer miles.

American Airlines stated that passengers will now pay $35 to check their first bag for domestic flights if they book online in advance. The price will be $40 if they choose to purchase the service at the airport. Previously, both options were priced at $30. For a second checked bag, the fee will increase to $45, up from $40, regardless of whether it’s purchased in advance or at the airport.

The cost of checking a first bag on flights between the U.S. and Canada, the Caribbean, or Mexico will be a flat rate of $35, regardless of booking method.

This move comes as American Airlines strives to increase its revenue amidst declining airfare prices. In January, airfare dropped by more than 6% compared to the previous year.

Scott Chandler, American Airlines’ senior vice president of revenue management and loyalty, explained that the decision to raise bag fees was driven by the increased cost of transporting bags, with fuel being a significant factor.

Other major airlines, including Alaska Airlines and JetBlue Airways, have also recently increased their bag fees. Alaska Airlines raised the charge for economy passengers to check bags by $5, while JetBlue Airways adjusted their fees for different services to cater to specific customer needs.

Speaking on the matter, JetBlue stated that although they do not like increasing fees, it is a necessary step to ensure the company’s profitability and cover the rising costs of baggage transportation. By adjusting fees for services used by specific customers, JetBlue can maintain lower base fares while still providing free amenities like seatback TVs and high-speed Wi-Fi to all passengers.

United Airlines, Delta Air Lines, and Southwest Airlines have not yet commented on any potential changes to their baggage policies. Southwest Airlines currently allows passengers to check two bags for free.

Baggage fees have become a significant source of revenue for U.S. airlines, with American Airlines alone generating over $1 billion from such fees in the first nine months of 2023. The total revenue from baggage fees increased by 9% compared to the previous year and over 25% compared to the same period in 2019, as reported by the Transportation Department.

American Airlines has also made adjustments to its overweight baggage fees. Travelers will no longer face hefty fines for bags slightly over the weight limit. Instead, they will be charged a fee of $30 for checked bags up to three pounds over the 50-pound limit, as opposed to the previous $100 fee.

Furthermore, American Airlines will begin limiting which third-party purchased tickets are eligible to earn AAdvantage frequent flyer miles. This move aims to drive traffic to the airline’s website and is part of a series of changes to the program. A list of preferred travel agencies whose bookings will still be eligible for rewards credits will be provided in April. Customers who purchase basic economy tickets will only earn frequent flyer miles if they book directly on American Airlines’ website.

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