American Airlines to charge passengers for baggage

Washington: With skyrocketing fuel prices, United States carrier, American Airlines has announced plans to start charging passengers for baggage, cut domestic flights and lay off workers.

American said rising oil prices have increased its expected annual fuel costs by nearly $3 billion since the start of the year.

Passengers will be charged $15 for the first checked bag. Last month it announced a charge of $25 for the second bag.

The first-bag fee will be charged to everyone except people who belong to elite levels of its frequent flyer program, those who bought full-fare tickets, and those traveling overseas.

Fares have been raised over the last few months as well.

United Airlines, another US carrier, is also "seriously studying" imposing its own fee on first bags.

American will be reducing flights and charging more fees to adapt to rising prices.