Wednesday, May 21, 2008

American To Begin Charging For Any Checked Bag

By Mike Grasso
After recently announcing a $25 fee for a second piece of checked luggage, American Airlines said today they also will begin assessing a $15 fee for the first piece of checked luggage. The Dallas-based carrier says it will cut domestic capacity by 10-11% the fourth quarter, lay off possibly several thousand jobs, and add additional fees for certain transactions.

American, like other airlines, are facing tough economic times. They are racing to find methods to reduce operating costs and generate additional revenue to offset record high jet fuel prices.
The new $15 fee becomes effective June 15th. American is the only legacy carrier in the United States to charge such a fee.

The parent company of American-AMR, saw its stock plummet over 30% today, now selling just under a mere $7 bucks.

In effect, the airline will push more people to try and carry fuller, heavier bags onto already cramped overhead space.

With recent airline bankruptcies and shutdowns, fuel surcharges, limiting mileage accrual, and charging baggage fees, we are truly living in a new era of air travel. We should expect a turbulent ride in the coming months as more big changes are surely in store for a deeply troubled airline industry.