American Airlines to Charge for First Checked Bag

It was bound to happen. With all the financial trouble the major airlines have seen recently, the question was never really “if” but “when” or “who”. Last week, we got our answers.

As of June 15, American Airlines will begin charging a $15 fee for the first checked bag on domestic flights. The second checked bag will continue to incur a $25 fee.

Why?

The shortest answer is that the major airlines are badly in need of money.

Quite frankly, if the airlines’ safety statistics were as discouraging as their business statistics, all of us would be terrified of flying. Most of the major airlines’ business scores have been declining steadily for the last three years. Today, with a few glaring exceptions such as Southwest Airlines, most airlines are in as much economic trouble as they were following the terrorist attacks of 9/11. Experts blame high oil prices and cut-throat competition.  

Charging for all checked bags is a last ditch attempt to stay financially afloat. In addition to this measure, American Airlines has announced they will also be laying off workers and cutting back on domestic flights.

Who Will Be Affected?

American Airlines plans to charge passengers who hold discount coach tickets a $15 fee for the first checked bag on domestic flights. The charge will affect most customers, but by no means all. The following categories of customers may be exempt from the new charge:

• Customers who hold full fare coach tickets
• Customers with business or first class tickets
• Customers whose flights originate in the U.S. and terminate on foreign soil, or vice versa
• Customers with premium status in American Airlines frequent flyer program 
• Military passengers on active duty

What about the other Airlines?

So far, American Airlines is the first and only major airline to charge for all checked luggage

In June 2007 the smaller Spirit Airlines began charging $5 to $10 for the first checked bag. However, Spirit Airlines also cut fares at the same time. American Airlines has not announced any plans to do likewise.

Most industry watchers predict that now that a major airline has opened the door to charging for all checked bags, other major airlines will follow suit.

In other words, between high gas prices on one end and high airline fares with added fees on the other, we could all be facing a long, expensive summer where travel is concerned.