‘Barron’s Roundtable’ panels discuss investment opportunities among airline stocks.
American Airlines on Thursday announced that it will increase the fee for checked bags as the company and other airlines face rising fuel costs.
The airline is raising its own fund money on flights within the US, Canada and short-haul international flights $10 to $50 for the first bag and $60 for the second bag. Customers will also pay $200 for a third checked bag if purchased at the airport, which is $50.
Travelers who pre-pay for their first and second checked bags on the American Airlines website or through the airline’s mobile app will receive a $5 discount, paying $45 and $55, respectively. The changes came into effect on April 9.
Customers traveling on a basic economy ticket will pay $55 for their first checked bag and $65 for their second checked bag with tickets purchased on and after May 18. Those who prepay through the American Airlines website or mobile app will receive a $5 discount.
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American Airlines is increasing its checked bag fee. (Kevin Carter/Getty Images)
Travelers with Advantage status will continue to receive flattering bags on American Airlines flights, and AAAdvantage credit card holders will also receive their eligible checked bags for free on domestic flights with the airline.
Additionally, customers who purchase premium cabin seats on domestic and international flights will continue to receive goody bags, while working. US military and you’ll still get complimentary bags.
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Airlines are increasing their checked bag fees to cope with rising fuel costs. (Mark Felix/Bloomberg via Getty Images)
The move comes as several other airlines have recently increased their checked bag fees.
Alaska Air Group has increased the cost of flights on North American Alaska Airlines and Hawaiian Airlines by $5 for the first checked bag and $10 for the second. The new fees started on Friday and will be $45 and $55, respectively.
Delta Air Lines and Southwest Airlines are both raising their checked bag fees by $10, raising the cost to $45 for the first bag and $55 for the second.
Delta’s revised baggage fees went into effect Wednesday, while Southwest’s went into effect Thursday. Delta’s changes affected domestic routes and selected short-haul international flights and represented the first increase in domestic baggage fees in two years.
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| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 11.32 | -0.05 |
-0.44% |
JetBlue again United Airlines have also increased baggage fees in recent weeks.
The increase comes as airlines face rising operating costs, in particular jet fuel.
Jet fuel prices have risen globally in recent months, rising from around $85 to $90 a barrel in February to around $209 after disruptions related to tensions The Strait of Hormuz during the Iran war, according to Reuters.
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FOX Business’ Sophia Compton contributed to this report.
