American Airlines Raises Bag Fees, Expands Basic Economy Restrictions

On Thursday, American Airlines raised its checked-bag fees, aligning with similar decisions by United Airlines, JetBlue Airways, Delta, and Southwest. This change applies to passengers who buy basic economy tickets. 

These decisions by the airlines have come amid increasing fuel costs due to the war in the Middle East. 

American Airlines' cost increase is for its "no-frills option," per CNBC, while other airlines have increased prices across the board.

This announcement comes shortly after American expressed interest in bringing back seatback screens. 

Fee Increases Across Main Cabin and Basic Economy

Here's a full breakdown of the increases for main cabin fares, per USA Today. 

• $50 when paid at the airport, $45 online ($10 increase). 
• $60 when paid at the airport, $55 online ($10 increase). 
• $200 for a third bag ($50 increase). 

Checked bags will remain complimentary to premium cabin passengers, active-duty military, and AAdvantage status members. 

Here are the changes coming to basic economy: 

• Domestic flights purchased on or after May 18: $55 for the first bag, $65 for the second. There's a $5 online discount. 
• For tickets purchased on or after April 9 to South America (excluding Colombia, Ecuador, Guyana, and Peru): $70 for the first bag, $100 for the second bag. No pre-paid discount available. 
• Tickets to Colombia, Ecuador, Guyana, or Peru on May 18 or later: $70 for the first bag, $100 for the second. 

Rising Costs, Industry Trends, and Fuel Increases

Not only that, but starting May 18, passengers in basic economy will have to pay to pick a seat and won't "be eligible for complimentary and system-wide upgrades," per CNBC. 

According to CNBC, airline executives have said travel demand is high, but it's unclear whether carriers can cover fuel price increases. 

With the Strait of Hormuz effectively closed, this has created issues with the supply of crude and refined products like jet fuel. 

Fuel is the second-biggest. The first is labor. 

CNBC also notes that airlines have been leaning more into premium offerings and making basic fares much more restrictive "as the growth from higher-end options outpaces sales from regular economy."

The outlet also notes that American Airlines has lagged behind other competitors such as Delta and United in "seeking out luxury customers, profit and more."