American Airlines Adds Baggage Fees
American Airlines announced today that, as of next month, they'll be tacking on a $15 charge for your first checked bag. And The Wall Street Journal suspects this is just the tip of the additional-fee iceberg as airlines collapse under record-high oil prices. Skirting around chasing off customers by higher ticket prices, carriers are increasingly adding unexpected, post-purchase fees.
American will also be cutting 11 to 12 percent of flights this year, meaning layoffs, smaller fleets, and inconvenient schedules. Analysts expect similar fees, cut flights, and possible bankruptcy from other big-name carriers that have recently been living off years-old savings. Southwest could be the only airline exempt from the fall-out, as they had the good sense to buy fuel when prices were low.
But, you’re in luck—we’re on your side. Check out our guide to navigating the unfriendly skies.
Claire Napier Galofaro













American Airlines and others who plan on implementing this new and excessive luggage fee are unfairly passing on the cost to the workers they lay off and the consumers who are paying more. AA’s current situation is an example of the difficulties that arise due to failures in our capitalist system. I believe that the theoretical principles inherent in the concept of perfect competition will have practical implementation and allow market forces to restore equilibrium. Southwest Airlines is an example of one of those market players who will drive the restoration to equilibrium, because Southwest will take away customers from AA and others, until they become competitive again by making the proper adjustments and dropping the excessive fees.
Posted by: realanswers | May 22, 2008 at 07:12 PM
This is alarming, at the very least. And I have this weird feeling that the resot of the airlines in the US are going to follow suite, just like they did on the second bag charge.
I think US airlines should look hard at their business model. May be they should learn from the very successful Asian airlines, like Singapore, Cathay Pacific, Emirates and even Jet Airways, that not only provide top-notch service, but also turn a healthy profit.
There still are true full-service carriers around, and I think US airlines should stop trying to be the next Southwest, but rather aim for quality, which in turn will attract higher paying passengers.
Posted by: Shashank Nigam | May 22, 2008 at 01:13 PM
Just one more reason not to fly American. Yes oil prices are high, but come on have some since. You force customers to check there baggage if it's to large and then you charge them to do it!
Posted by: Prindle | May 22, 2008 at 11:31 AM