Business | Aviation
American Airlines to charge passengers for baggage
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.
- Agencies
- Published: 13:18 May 22, 2008
- Image Credit: AP
- The American Airlines counter at Portland International Airport, USA. American Airlines plans to charge $15 for many passengers' first checked bag starting in mid-June.
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.
More from Aviation
More from Business
Business Editor's choice
-
Saudi-Bahraini economic ties hit new high
Whilst press reports continue speculating on a possible new political structure defining ties between Saudi Arabia and Bahrain, facts on the ground confirm ever- stronger economic ties between the two neighbours
-
Cupid targets the Fed with early tweets
Declarations range from pure romance to cute overtures and racier fare
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
