American Airlines raises checked bag fees, trims economy perks as fuel prices surge
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The steps are to protect its margins as operating costs rise.
PHOTO: REUTERS
American Airlines is hiking checked baggage fees for domestic and short-haul international destinations and trimming some perks for economy fliers, as soaring jet fuel costs squeeze the global aviation sector.
It is one of the last major US-based carriers to take steps to protect its margins as operating costs rise due to higher jet fuel prices, driven by tensions in the Middle East that disrupted shipping through the Strait of Hormuz, which carries about a fifth of global oil flows.
Jet fuel, which averaged at about US$85 to US$90 a barrel in February before the Iran war started, has surged to around US$209 per barrel globally, according to the International Air Transport Association.
American Airlines said it would raise the fee by US$10 (S$12.74) each for the first and the second checked bag for travellers booking domestic and short-haul international flights, starting on April 9.
It has also increased the cost of a third checked bag by US$50 to US$200 for the travellers, although that pricing structure was already in place for some locations, such as Canada.
American Airlines has also outlined an additional US$5 bump on checked bags for customers flying with basic economy tickets, effective from May 18.
Basic economy fliers will also be charged a fee to select a seat and will not be eligible for complimentary system-wide upgrades on flights from May 18.
Meanwhile, travellers who purchase tickets in premium cabins will continue to receive free baggage on both domestic and international flights, American added. REUTERS
