AP
American Airlines is increasing the cost of checked baggage and making other changes to push customers to buy tickets directly from the airline if they want to earn frequent flyer points.
The airline said Tuesday that the fee for one checked bag on a domestic flight will increase from $30 to $35 online and $40 if purchased at the airport. The fee for a second checked bag will increase from $40 to $45 both online and at the airport.
The last time American increased baggage fees was in 2018.
American Airlines, based in Fort Worth, Texas, introduced baggage fees in 2008 ($15 at the time) to offset rising jet fuel costs. Since then, they have become a steady source of revenue for most major U.S. carriers. American easily led the industry by collecting $1.4 billion in baggage fees in 2022, the last year for which U.S. Department of Transportation figures are available.
The airline is also increasing baggage fees by $5 for short international flights, including those to Canada, Mexico and the Caribbean, now $35 for the first bag and $45 for the second.
Generally, the airline will allow customers to check at least one bag for free if they have elite status in American's loyalty program, purchase a premium class ticket, or use an American-branded credit card.
American will offer some relief to customers whose bags are slightly overweight or large. Instead of receiving the full additional fee, which ranges from $100 to $650, graduated fees will start at $30 for bags that weigh no more than 3 pounds (1.36 kg) or are no more than three linear inches over the limits.
And it's reducing the cost of transferring points between frequent flyer accounts.
At the same time, American announced that for tickets issued on or after May 1, customers will need to purchase tickets directly from the airline, its partner airlines, or preferred online travel agencies if they wish to earn points in its AAdvantage loyalty program. The airline said it will list the preferred travel agencies by the end of April. Business travelers will not be affected.
About 60% of American's ticket sales are already made directly through the airline, said Scott Chandler, vice president of revenue management.
The changes are part of a longer shift by airlines away from using travel agencies, paying them commissions, and handling ticket sales internally.
“The old way of booking a ticket relied on agents having a lot of experience and understanding the product’s features,” Chandler said in an interview. “Legacy technology doesn’t allow us to explain things very well, and it’s a bit more confusing for customers when we introduce new products.”.
Chandler compared it to the way Amazon.com explains the features it sells on the site.
