Panelists from ‘Barron’s Roundtable’ discuss investment opportunities in airline stocks.
US airlines announced Thursday that it will increase checked bag fees as the company and other airlines face rising fuel costs.
The airline raises her pocket allowance for flights within the US, Canada and short-haul international flights with $10 to $50 for the first piece of luggage and $60 for the second piece of luggage. Customers will also pay $200 for the third checked bag when purchased at the airport, an increase of $50.
Travelers who pre-pay for their first and second checked bags on the American Airlines website or through the airline’s mobile app will receive a $5 discount, down from paying $45 and $55 respectively. The changes came into effect on April 9.
Customers traveling on a domestic basic economy ticket will pay $55 for their first checked bag and $65 for their second checked bag with tickets purchased on May 18 and after. Those who pay in advance through the American Airlines website or mobile app will receive a $5 discount.
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American Airlines is raising checked bag fees. (Kevin Carter/Getty Images)
Travelers with AAdvantage status will continue to receive them free bags on American Airlines flights, and AAdvantage credit card holders also get their first eligible checked bag free on domestic flights with the airline.
In addition, customers who purchase seats in premium cabins on domestic and international flights will continue to receive free baggage allowance while on active duty American military personnel also still receives free bags.
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Airlines are increasing their checked bag rates to cope with rising fuel costs. (Mark Felix/Bloomberg via Getty Images)
The move comes as several other airlines have recently increased their checked baggage fees.
Alaska Air Group increased travel fees on North American Alaska Airlines and Hawaiian Airlines flights by $5 for the first checked bag and $10 for the second. The new fees went into effect Friday and are $45 and $55, respectively.
Delta Air Lines and Southwest Airlines are both increasing checked bag fees by $10, raising the cost to $45 for a first bag and $55 for a second.
Delta’s updated bag fees went into effect Wednesday, while Southwest’s went into effect Thursday. Delta’s changes affected domestic routes and select short-haul international flights and marked the first increase in domestic bag fees in two years.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 11.32 | -0.05 |
-0.44% |
JetBlue and United Airlines have also increased baggage fees in recent weeks.
The fare increases come as airlines in particular struggle with rising operating costs jet fuel.
Jet fuel prices have soared globally in recent months, to about $209 from about $85 to $90 a barrel in February, following disruptions linked to tensions in the oil and gas industry. Strait of Hormuz during the war against Iran, according to Reuters.
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