American Airlines Hikes Bag Fees, Limits Miles For Travel Agency Bookings: What Flyers Need To Know
Portfolio Pulse from Benzinga Neuro
American Airlines (NASDAQ:AAL) has increased its baggage fees for the first time in over five years and altered its policy on travel agency bookings, affecting frequent flyer miles earnings. The fee for the first checked bag on domestic flights is now $35 online and $40 at the airport, up from $30. The second bag fee is raised to $45. The changes aim to boost revenue amid declining airfare and rising fuel costs. Other airlines like Alaska Airlines and JetBlue Airways have also increased their bag fees.
February 21, 2024 | 10:58 am
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American Airlines has raised its baggage fees and modified travel agency booking policies to increase revenue and address rising fuel costs.
The increase in baggage fees and policy changes are direct actions by American Airlines to enhance revenue and manage operational costs, particularly fuel expenses. This strategic move, especially in a challenging airline industry environment, could positively impact AAL's financial performance in the short term by increasing revenue streams and potentially improving profitability.
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