"American Airlines Raises Bag Fees, Won't Allow Some Travel Agency Bookings To Earn Miles" - CNBC
Portfolio Pulse from Benzinga Newsdesk
American Airlines has announced an increase in checked baggage fees, the first in over five years, and introduced restrictions on earning frequent flyer miles for tickets purchased through third-party travel agencies. The new fees are $35 for the first checked bag on domestic flights when booked online in advance, up from $30, and $45 for a second checked bag. The airline is also reducing fees for slightly overweight bags and will only allow frequent flyer miles for basic economy tickets booked on its website or through preferred travel agencies.
February 20, 2024 | 3:25 pm
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American Airlines raises checked baggage fees and restricts frequent flyer mile earnings for third-party bookings to boost revenue and direct traffic to its website.
The increase in baggage fees and the strategic move to limit frequent flyer mile earnings for tickets not booked directly through American Airlines or preferred travel agencies are likely to have a positive short-term impact on AAL's revenue. By encouraging direct bookings and potentially reducing the cost burden of overweight baggage fees, American Airlines aims to enhance its revenue streams and customer loyalty. These changes could lead to increased direct bookings, higher ancillary revenue from baggage fees, and potentially lower operational costs related to baggage handling.
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IMPORTANCE 85
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