American Airlines is adjusting its bag fees and updating how customers earn loyalty points.
American Airlines announced Tuesday that it is raising its checked-bag fees on domestic flights for the first time since 2018. The airline is also revising the way customers earn AAdvantage miles and Loyalty Points on ticketed flights after May 1, 2024.
Beginning in May, most customers must book directly with American, eligible partner airlines, or preferred travel agencies to earn miles and points unless they are AAdvantage Business members or contracted corporate travelers. Additionally, the prices for checking baggage online will be lower than those for checking bags at the airport in person.
The company says the changes are being made to “make it more convenient for customers” to handle everything related to their flights by centralizing it in one online location.
“Not only does booking directly with American provide the best possible experience, it’s also where we offer the best fares and it’s most rewarding for our AAdvantage members,” said American Airlines Chief Commercial Officer Vasu Raja.
Customers already book about 60% of trips directly through the airline, but American wants to see more travelers adopt the online method, according to Scott Chandler, vice president of revenue management.
According to American Airlines, prices for the first checked bag have increased to $35 if the transaction is conducted online and $40 if done at the airport. If travelers want to check a second bag, the price has been updated to $45 for both methods.
However, the airline is also introducing a middle-ground fee for baggage that is only slightly oversized or overweight to introduce savings for customers who are just over these thresholds.
American isn’t the first airline in 2024 to raise prices on checked bags. Alaska Airlines raised its checked-bag fees by the same dollar amount as American in early January. JetBlue also followed the trend, raising its fees to $35 for the first bag and $50 for the second.
“Airlines tend to move in herds, so when Alaska recently announced they would be upping their bag fee to $35, there was little doubt other airlines would soon follow,” Scott Keyes, founder of Going, a membership-based website and newsletter that finds flight deals, told AP News. “It’s unlikely American will be the last.”
In 2022, American Airlines raised $1.4 billion in bag fees, outpacing all other airlines quarter over quarter, according to the most recent data from the Bureau of Transportation. The airline with the second-highest earnings from bag fees was United, which earned $1.12 billion.
While the cost increases may be unwelcome to some consumers, Chandler says the move helps reduce the amount airlines pay travel agents in commissions.
“The old way of booking a ticket relied on agents having a ton of experience and understanding product attributes,” said Chandler, per AP News. “The old technology doesn’t let us explain things very well, and it is a little more confusing for customers when we introduce new products.”
The Dallas Express reached out to American Airlines for comment but had not heard back as of publishing time.
