American Air Joins Biggest U.S. Rivals in Adding $30 Baggage Fee
American Becomes Final Big 3 U.S. Airline to Hike Bag Fee to $30
(Bloomberg) -- American Airlines Group Inc. became the last of the three largest U.S. carriers to boost its fee for a first- or second- checked bag by $5.
The change, effective for tickets purchased starting Sept. 21, puts the charge for a first bag at $30 and $40 for a second. United Continental Holdings Inc. and Delta Air Lines Inc. already adopted the change after JetBlue Airways Corp. took the lead in raising fees last month. Southwest Airlines Co. remains the only large U.S. carrier without a charge for a first or second checked bag.
The higher fees extend an industry push for more revenue from items other than tickets. U.S. airlines already are slowing growth in the last half of the year in an effort to tighten the seat supply and gain added power to raise fares. Fuel prices have climbed more than 25 percent in the last year, adding pressure on an industry that’s facing a third consecutive year of declining profits.
Alaska Air Group Inc.’s rate remains at $25 each for the first two bags, according to the carrier’s website.
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To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan Warren
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