American Airlines Hikes Baggage Fees, Changes Loyalty Points Policy

(RTTNews) - Texas-based American Airlines (AAL) introduced several significant changes, including raising charges on first and second-checked bags and tightening the loyalty points program to offset increased maintenance costs.

After a 6-year gap, the airline raised the charges from $30 to $40 for the first bag checked at airport counters and to $35 when booked online. The charges for a second bag were increased to $45 from $40 for domestic flights. For Canadian and short-haul international flights, the new bag fees are $35 for first-checked bags and $45 for second-checked bags.

However, American Airlines stated that "Customers who purchase premium cabins on domestic and international flights will continue to receive complimentary bags."

Also, the hike doesn't apply to AAdvantage status members, who receive free checked bags from the airline, and AAdvantage credit card members, who also receive the same advantage for their first bag on domestic flights.

"American also offers complimentary bags to active-duty US military personnel on all American flights," the airline added.

Starting April 17, American Airlines will also charge an additional $30 fee for checked bags weighing over 50 pounds up to 53 pounds, and for customers with pets, it hiked the charges to $150.

The airlines which flew around 210.7 million people in 2023, revealed that from May 1 AAdvantage members will only earn miles and Loyalty Points when they book flights through the company's direct website and eligible partner airlines, or through preferred travel agencies, in a bid to discourage customers from booking via third-party agencies, whose discounted tickets harm the airline's profitability.

However, the airline maintained that the basic economy fares will be eligible to earn miles and loyalty programs only by booking through American Airlines' website.

The newly introduced changes were in response to the increased maintenance costs including fuel costs and new labor contracts. "I want to say our maintenance expense in 2023 versus 2022 was up something close to $0.5 billion," said Devon May, chief financial officer of American Airlines, during the earnings call last month. "This year flattens out a bit. We do expect it to be up."

Previously, Alaska Airlines had hiked its baggage fees by $5 citing similar reasons.