American Airlines increases baggage fees, tweaks Loyalty Program

American Airlines has recently hiked its baggage fees as part of a strategy to incentivize customers to purchase tickets directly from the airline. The cost of checking a bag on a domestic flight has risen from $30 to $35 when purchased online, and to $40 if purchased at the airport. The fee for a second checked bag has also seen an increase from $40 to $45, both online and at the airport.

This is not the first time the airline has raised its bag fees. They were first introduced in 2008 to offset the rising cost of jet fuel and have since become a significant revenue source for most major US carriers. In 2022 alone, American Airlines generated $1.4 billion in revenue from bag fees, leading the industry.

The airline has also announced a $5 increase in bag fees for short international flights to Canada, Mexico, and the Caribbean. The fees for these flights will now be $35 for the first checked bag and $45 for the second. However, customers who hold elite status in American’s loyalty program, purchase premium-class tickets, or use an American-branded credit card will still be able to check at least one bag for free.

In addition to the changes in baggage fees, American Airlines is reducing the cost of transferring points between frequent-flyer accounts. The airline is also modifying its AAdvantage loyalty program. Starting May 1, customers will need to buy tickets directly from the airline or its partner carriers, or from preferred online travel agencies, to earn points in the program. This change will not affect corporate travelers.