American Airlines Leads in Baggage Fee Hike

In a notable shift within the airline industry, American Airlines has announced an increase in its checked baggage fees, setting a new standard among legacy carriers for the cost of checking luggage. This adjustment marks the first increase in over five years, with the first bag's fee rising to $35 when booked in advance, or $40 if paid at the airport on domestic flights. The price adjustment extends to flights between the U.S. and Canada, the Caribbean, or Mexico, where the first bag will also cost $35, regardless of where it is paid for.

A Trend Among Carriers?

Following closely on the heels of Alaska Airlines, which recently raised its baggage fees by $5, American Airlines' decision could signal a broader trend among major U.S. carriers. This move revisits the pattern seen in 2018 when a domino effect led to widespread fee increases across the industry. The question now looms large: will other major U.S. airlines follow suit in adjusting their baggage fee structures?

Adjustments to Overweight and Oversize Baggage Fees

In a counterbalance to the increased standard baggage fees, American Airlines has introduced more lenient charges for overweight and oversize baggage. The airline now imposes a $30 fee for bags that exceed the standard weight or size limits by a small margin, significantly reducing the financial burden on passengers dealing with slightly larger or heavier luggage.

Changes Affecting AAdvantage Members

Further adjustments have been made concerning the AAdvantage loyalty program, particularly regarding the accrual of frequent flyer miles through third-party bookings. American Airlines aims to encourage direct bookings through its website or selected travel agencies by limiting mileage earnings on basic economy fares purchased elsewhere.

Strategic Intentions

Vasu Raja, American's Chief Commercial Officer, emphasized the dual goals of enhancing customer convenience and rewarding direct engagement with the airline. By adjusting baggage fees and AAdvantage mile accrual policies, American Airlines seeks to streamline its service offerings and foster a more direct relationship with its customers.

As the airline industry continues to evolve, passengers and industry observers alike will be watching closely to see how these changes impact travel habits and whether other carriers will adjust their fee structures in response.