American Airlines now charging for checked bags

May 21st 2008

Every airline around seems to be hitting rough times amid continuously escalating fuel prices. American Airlines is no exception and passengers will soon be hit with fees for any checked bags for tickets purchased after June 15.

In the next upcoming months, expect to see American and American Eagle cut back on the number of active fleets, reduce flight schedules and lay off workers. President and CEO, Gerard Arpey said travelers will see a $15 charge for the first piece of checked luggage. This is the first time in history that a major domestic airline is utilizing this method to increase overall revenue.

Recall that American recently introduced a $25 fee for any second bag checked. Arpey stated that other passenger fees, such as surcharges for pets and accompanied minors will also increase. What's more, the AMR Corporation-the parent company of both airlines-plans to retire 40-45 American Airlines jets and 30-35 American Eagle planes once the fourth quarter approaches. This will cut its domestic activity by up to 12 percent. Such fewer flights will lead to a number of job cuts-the number of layoffs has yet to be announced.