American has increased its checked bag prices for the first time since 2018|Jonathan Cutrer|CC BY-NC 2.0
Checking in a bag for flying will cost more now as a slew of airlines have increased their baggage fees. And on Tuesday, American Airlines became the latest carrier to hike its bag fees by $10 at the airport.
If purchased online, the fees that used to be $30 would increase to $35. The carrier will charge $45 for the second bag. The new costs came into effect yesterday and apply to all domestic American Airlines bookings.
It is the first such hike by the airlines since 2018.
It’s not just American. Alaska Airlines hiked its bag fee by $5 in January, while JetBlue and United began charging higher fees in 2020. Now, JetBlue charges $45 for the first bag and $60 for the second within 24 hours of departure.
Additionally, American also announced new fees for oversized and overweight bags, with reduced charges for bags slightly exceeding limits, that will begin on April 17.
Why?
Airlines are attributing rising inflation, fuel prices and labor expenses to the price change.
But another reason could be that these ancillary fees have become a significant revenue stream for airlines. Checked-bag fees earned US airlines approximately $7 billion in 2022—a 17% increase from pre-pandemic levels—and nearly $5.5 billion in the first three quarters of 2023.
What to expect?
Industry experts anticipate more airlines will follow suit with checked baggage price changes.
They worry such moves may prompt passengers to carry on luggage, which, in turn, could exacerbate existing challenges with overhead bin space and gate-checking queues.
As fees rise, travelers may also opt for loyalty programs or premium tickets offering free baggage.