Luggage tags are about to come with a higher price tag at one airline. American Airlines is changing its checked bag fees for domestic and international flights for the first time since 2018, the company announced Tuesday (Feb. 20).
For trips booked on or after Feb. 20, the first checked bag for domestic flights to all fifty states, Puerto Rico, and the US Virgin Islands will be $35 if purchased online or $40 if purchased at the airport — about 33% higher than the previous price of $30. A second checked bag will run flyers $45, up from $40.
For travelers checking bags to Canada and for short-haul international flights, the first checked bag purchased online or at the airport will cost a flat $35, and the second checked bag will cost $45, the airline said. Perhaps to soften the news, American introduced its “lowest fee ever” for heavier and larger than standard checked luggage, which will start at $30 beginning April 17.
American noted that certain airline members with AAdvantage status (the company’s loyalty program) and credit cardholders will still receive complimentary or free bags on some flights.
What’s behind American’s new bag fees
The rise in baggage fees is due to a mix of inflation, fuel costs, and increased operating costs, a spokesperson for American Airlines told Quartz.
“Fuel is a big component — obviously the more bags we carry, the more fuel you’re burning,” Scott Chandler, senior vice president of revenue management and loyalty at American Airlines, told the Wall Street Journal. “The cost of handling bags across the board, from real estate, machinery, et cetera, has gone up. This is trying to match that.”
In addition to the updated checked bag fees, American is also changing the way customers earn miles and points starting with tickets issued for May 1. From that date on, customers will only earn miles and loyalty points for flights booked directly with American and eligible partner airlines, flights booked as an AAdvantage Business member or as a contracted corporate traveler, or flights booked through eligible travel agencies.
Chandler told the Associated Press that while over half of ticket sales are already made through American, the change is meant to bring sales in-house instead of through travel agents which the airlines have to pay a commission.
“The old way of booking a ticket relied on agents having a ton of experience and understanding product attributes,” Chandler said. “The old technology doesn’t let us explain things very well, and it is a little more confusing for customers when we introduce new products.”