American Airlines hikes bag fees.

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American Airlines has recently announced an increase in its baggage fees to encourage customers to buy tickets directly from the airline.

According to the airline, checking a bag on a domestic flight will now cost $35 when purchased online and $40 if purchased at the airport.

These fees are up from $30. The fee for a second checked bag will increase from $40 to $45 both online and at the airport. American Airlines had previously raised its bag fees in 2018.

American Airlines introduced bag fees in 2008 to cope with the rising cost of jet fuel. These fees have since become a steady revenue source for most major US carriers.

In fact, in 2022, American Airlines raised $1.4 billion in bag fees alone, leading the industry in this regard.

The airline is also raising bag fees by $5 for short international flights to Canada, Mexico, and the Caribbean.

The fees for these flights will now be $35 for the first checked bag and $45 for the second. However, customers who hold elite status in American’s loyalty program, buy premium-class tickets, or use an American-branded credit card can still check at least one bag for free.

In addition to the changes in baggage fees, American Airlines is also cutting the cost of transferring points between frequent-flyer accounts.

The airline is also changing the way it rewards points in its AAdvantage loyalty program. Starting from May 1, 2021, customers will have to buy tickets directly from the airline or its partner carriers or from preferred online travel agencies if they want to earn points in the program. Corporate travelers, however, will not be affected.

According to Scott Chandler, the vice president of revenue management at American Airlines, the changes are part of a long shift by airlines away from using travel agents. American Airlines wants to bring ticket sales in-house to explain things more clearly and introduce new products more easily.

The airline will list its preferred travel agencies in late April to give customers ample time to adjust to the new policy.