American Airlines to charge for 1st checked bag
Hammered by rising fuel costs and facing a soft U.S. economy, American
Airlines will begin charging for a first checked bag and announced cuts
to its flight capacity.
AMR Corporation, the Fort Worth, Texas-based parent company of American
Airlines, said Wednesday it will start charging $15 US for a first
checked piece of luggage on June 15.
The airline said it will also raise fees for a variety of other
services, including reservation services, and shipping pets and
oversized bags.
The fees will apply on all of American's U.S. domestic routes, plus
flights to and from Canada and U.S. territories. Passengers paying for
full-fare tickets, those on other international routes and elite level
frequent flyers will be exempted from the new fees.
American said in April it will begin charging $25 US for a second
checked piece of luggage.
"The airline industry as it is constituted today was not built to
withstand oil prices at $125 a barrel, and certainly not when record
fuel expenses are coupled with a weak U.S. economy," said Gerard Arpey,
chair and CEO of AMR.
"Our company and industry simply cannot afford to sit by hoping for
industry and market conditions to improve.
AMR said it paid $665 million more for fuel in the first quarter than it
would have paid at prices from the same quarter of last year.
It said its first-quarter fuel expense increased by 45 per cent year
over year, while its total revenue increased by five per cent.
Delta Airlines quickly said it would not follow American's lead on
charging for a first checked bag.