The Blubber

American Airlines, $AAL, has raised the prices of checked baggage to $40 at the airport, per CNBC.


Passengers booking domestic flights online in advance will now pay $35 to check a first bag, up from $30. The price for checking a first bag at the airport has also increased to $40. The cost for a second checked bag has gone up to $45, regardless of whether it's purchased in advance or at the airport.

For flights between the U.S. and Canada, the Caribbean, or Mexico, the fee for the first checked bag will be $35, regardless of when it's purchased.

American Airlines last raised its bag fees in September 2018, along with other major airlines. This increase comes as airlines seek ways to boost revenue amid declining airfare prices. According to the latest inflation report, airfare dropped by more than 6% in January compared to a year earlier.

Scott Chandler, American's senior vice president of revenue management and loyalty, noted that the cost of transporting bags has increased significantly in recent years, with fuel being a major factor.

Other airlines have also raised their bag fees. Alaska Airlines raised its fees for economy passengers checking bags by $5, while JetBlue Airways increased fees for checking bags within 24 hours of departure. JetBlue now charges $35 for the first bag checked in advance.

JetBlue stated, "While we don't like increasing fees, it's one step we are taking to get our company back to profitability and cover the increased costs of transporting bags."

United Airlines and Delta Air Lines did not comment on potential changes to their policies, while Southwest Airlines continues to offer two free checked bags.

In the first nine months of 2023, U.S. airlines collected $5.5 billion from baggage fees, with American alone bringing in over $1 billion. American's frequent flyer members with elite status and some American Airlines credit card holders will still receive a complimentary checked bag.

American Airlines is also reducing fees for slightly overweight bags. Customers will now pay a fee of $30 for checked bags that are up to three pounds over the 50-pound limit, instead of the previous $100 fee.

Additionally, American announced that it will limit which tickets purchased through a third party are eligible to earn AAdvantage frequent flyer miles. This move aims to drive traffic to American's website and is the latest in a series of changes to the program. A list of preferred travel agencies whose bookings will still be eligible for rewards credits will be provided in April.