Airline nickel-and-diming reaches new heights

Trying to make up for rising fuel costs, airlines have started charging for everything from snacks to window seats. Now, for the first time, passengers on a major domestic carrier will have to pay to check their luggage.

Beginning next month, American Airlines will charge domestic economy-class passengers $15 each way for the first checked bag, in addition to its existing $25 fee for a second bag. In other words, two passengers traveling with two bags each will pay $160 in fees for a round-trip journey.

This new surcharge is part of a package American is calling "additional revenue growth efforts." Also on the list will be fees for calls to its reservations center, transporting pets, and checking oversized bags. The Fort Worth, Texas-based airline said it was responding to "record fuel prices, growing concerns about the economy, and a difficult competitive environment." It estimates the new fees will generate several hundred million dollars in annual revenue.

Gerard Arpey, chairman and CEO of AMR, the airline's parent company, stated: "While we understand that these fees affect customers, we also believe that our pricing for the services we provide remains extremely competitive in the industry and continues to offer our customers ample choice and value." Arpey also announced American would reduce capacity by up to 12 percent, retire 75 aircraft, and implement an unspecified number of "workforce reductions."

The details: Passengers who buy domestic economy-class tickets on or after June 15th will pay $15 each way for the first checked bag and $25 each way for the second checked bag. The third, fourth, and fifth checked bags will cost $100 per piece and the sixth or more will cost $200 per piece. The changes affect all American, American Eagle, and AmericanConnection flights within the U.S., the U.S. Virgin Islands, Puerto Rico, and Canada. Although the airline will continue to allow "personal items" in the cabin (such as purses or laptop bags), sports equipment, such as skis or golf clubs, must be checked.

The fees will be waived for passengers on international flights, passengers in business or first class, military personnel on active duty, elite members of the AAdvantage or oneworld frequent-flyer programs, and those who purchase full-fare tickets in economy class.

At press time, no other U.S. carriers had matched American's move, though industry experts predicted they would.—William J. McGee

Comments

[kingbfree]

Charging to check your luggage!!!?? I've never taken a trip without luggage. All this means is that folks who don't want to pay extra will be forced to take their things as carry-on. Everybody knows that there's not enough room on a plane for everybody to have carry-on.

[dlsellers]

It's insane. The charges that started years ago just keep piling up. The question I have is -- what can we do about it? Go to the FTC? I feel helpless and outraged.

[cs]

Some luggage questions I'd love to see CR check throughout the airline industry:

-Will airlines charging for bag #1 waive the typical 50 pound weight limit? The new rule of charging for bag #2 had me already considering a bigger bag. I had been in the habit of using a duffle bag for overflow and for bulky items like coats.

-Since the checked luggage fee will make people even more inclined to overstuff the overhead bins, will I get charged for checked luggage if the airline forces me to check or gate-check a bag I intended to carry on?

ps: I'm only half serious about this but I regard this as unfair to big people. It's a lot tougher to go carry-on when you wear size 12 or 13 shoes.

[Boats]

The airline industry , as well as many other aspects of American life as we once knew it will change forever with the current price of fuel. What I dont understand is how the price of oil in Saudi, sets the price here or in Alaska or in other parts of the world. Seems like price fixing to me and in other industries would be a federal felony. Yes, I know..big laugh there right? So, we curb our driving , plan to make the most of errands to the stores and get it all in less trips. Cut our kids use of the car, skip vacations to save money for gas expense to work and school. I dont see most wages rising to cover the cost of gas and commutes. The cost of living period , in our transportation society, will be rising constantly. I see it in my groceries, my tires, just everything transported. Airlines will once again , become a luxury and as time goes, used less and less for fun and play. We all may become much more familiar with what is available within a hundred miles for vacations and getaways! And you know..that may not be a bad thing either.
Good luck to us all ! :)

[Linda Barrios]

I understand that the rise in fuel costs has effected all businesses as well as individuals but charging customers for checking one piece of luggage doesn't make sense. Adding a $15 surcharge to the ticket sounds more reasonable. And----do we get a $15 refund when the airline loses or misplaces our luggage????

[Abel Rodriguez]

So let me see, if I am running late with the flight schedule on a business flight, can I charge American Airlines for late Departure/Arrivals? They are very lucky I already have booked a flight with them for vacation, but I will not be flying with them long. So, they make a quick $100.00 but lose a valuable customer. I think this is a "great' deal for AA. Who's the rocket scientist that thinks these things up?

[mum&papa]

We're taking our kid across country to college next month, so a trip with a fair amount of luggage. When we made our reservations, we also figured in the cost of 2 pieces of checked luggage each. Interestingly, of the 8 airlines serving this route, the ones with the highest fares (American and United) also had the highest baggage fees. Needless to say. we booked with another airline, saving about $60 on each person's fare and another $160 on the bags. I'm sure plenty of other travelers will do the same calculus in the future, if they haven't already. Pennywise and pound-foolish does not bode well for some in the airline industry!

[RK]

My favorite now is the fee for soda now. You cant bring your own because of TSA and if you buy it before getting on the plane it is more expensive.

that plus airlines that wont take cash for drinks. The dollar is legal tender and sooner or later there will be a lawsuit stating that a consumer is not required to have charge cards to buy items.