American Airlines: Pack Light Or Pay Up

To Offset Rising Fuel Costs, Nation's Biggest Airline Joins List Of Carriers Charging For 2nd Bag

(AP)  American Airlines on Monday became the latest carrier to announce that it would require passengers to pack light, or pay up.

The nation's biggest airline said it must charge passengers $25 for checking a second bag to help offset rising fuel costs.

The fee will apply to travelers who buy domestic economy-class tickets on or after May 12, American said. It will also affect passengers on the American Eagle commuter line.

This year, American, United Airlines, the nation's No. 2 carrier, Continental Airlines, Northwest Airlines, Alaska Airlines and JetBlue Airways have all announced charges for something that has been free since commercial airlines began flying.

Airlines are under immense pressure to shore up balance sheets with the price of fuel reaching unheard of levels. Oil futures hit another record near $120 a barrel on Monday. Gas prices hit a record above $3.60 a gallon.

American's parent, AMR Corp., lost $328 million in the first three months of this year, mostly because fuel costs increased $665 million, or 45 percent, over early 2007.

Fort Worth-based American didn't say how much it expects to raise with the fee, but JetBlue, a much smaller carrier, said it expects to generate more than $20 million this year with a $20 second-bag fee.

American said elite members of its frequent-flier programs, including AAdvantage Gold, AAdvantage Platinum and AAdvantage Executive Platinum, won't have to pay the second-bag charge. The fee also won't apply to full-fare economy, business and first-class tickets, or international trips beyond Canada and U.S. territories such as Puerto Rico and the U.S. Virgin Islands.

Based on those exceptions, American said it expects about 4 percent of its domestic customers who check more than one bag will be charged the $25 fee.

AMR shares rose 25 cents, or 3.5 percent, to $7.69 Monday.

[frankbowers]

I fear they are some lies told here by the air line or any air line they pass the fuel charge on and have been for months wityh a sur-charge. They must be paying their CEO''s to much. They have all had a surcharges for a long time now and that is for fuel I though but perhaps it is for the CEO.
Frank Bjowers

[mexinvasion]

Hey, we''ll just do whatever it takes to maximize the bonus plan for the CEO.

[killtheliars]

They need to go under. If they cannot operate at a profit go out of business.
Also the rules need to change. Any airline should be able to fly in and out of any airport as long as security standards are met. This would increase competition and lower fares. In Philadelphia Southwest has put a hurting on US Air, if they allowed more competition they would probably go under, and the more effeciently run airlines would thrive.
I guess competition is only good when it is an excuse for big business to lower wages and cut benifits.

[slim1h2o]

American Airlines: Pack Light Or Pay Up

I would suggest your CEO, and your Board of Directors do the same, with your salaries.

In other words,,take a pay cut!

Keep your airline in business, take less bacon home!

[brianbwb-2009]

Posted by dowjones20k

Don''t be surprised when the dollar, If it should strengthen, will not affect the price of oil, there will be no price drop, there never has been other than slight seasonal fluctuations, also controlled by the oil collusion monopoly. Even though the dollar has seen many drops and rises in value, (over the average, a 70% drop since 1072) the price of gas never drops.

That should tell you something.

But the fact is that the dollar will not gain any appreciable value, if US exports rise on local currency prices for countries buying the few American goods left to export, they simply won''t sell, especially when cheaper versions are available. The Fed will then lower rates, keeping the dollar down, to protect the few export industries, at everyone else''s expense.

[incog-nito]

I really wish they would just raise the overall price of tickets. Way too many people are flying these days anyway. If you can''''t afford the fare then you should be taking Greyhound. Then the airlines could acually make some money and treat those of us who do fly as people again.

Posted by theroux1 at 03:42 PM : Apr 28, 2008

This was the case BEFORE deregulation. Expensive tickets, great service. But the airlines wanted, and got, deregulation. Reap what you sow, just don''t ask the taxpayer to bail you out when things go badly.

[michellem99-2009]

rudy ye ''member that bush is the reason 9/11. He and him. Then after that lied to us. yes sah..Told us to go on about our business..He changed this nation when he said he would not..on TV..Now look at the mess. Barbara

[rudy654-2009]

I stopped flying that crapppy carrier, American Airlines, a long time ago. I swear they are the worst of the worst. But the airline industry in America has had every excuse in the world to treat us like excrement ever since we bailed their sorry rear ends out after 9/11.

[inventagod2]

They should just send the $25 to Bu$h for his oilman retirement... We will miss the guy.

[dowjones20k]

The airlines in the USA have not been profitable in decades ... so big deal ... nothing has changed.

As for fuel .. its the speculators people .. gasoline is a commodity and foreigners are playing the market to make money .. wait till the dollar gains some strengh . (if it ever does) and see what oil drops too .. if we have an economy left to fuel ...

This crisis is going to be the MAJOR issue for Americans .. as well as food costs and healthcare.

It is absolutely out of control ... and we dont hear much from all the politicos in DC ...

All bought and paid for ....


sad sad

[seafang]

I''m wondering just where rf35 get the link between world energy prices and the US President. For one thing, the Congress has far more influence than any President ever can. They are the ones who cave into lunatic fringe environmentalist wackos to stop the Us from using the energy sources it has. The US still supplies about 40% of its own petroleum, and much of the rest comes from either Canada or Mexico, and we have plenty that is untapped because of laws passed by the Congress; and not conincidently demanded by a public who can''t think their way out of a paper bag.

Add to that a banking industry led by fools that couldn''t pass economics 101, and their non-governmental "federal" reserve that is quite happy to keep printing money, so the US currency becomes even more worthless than it was before. Japan''s banking industry took their interest rates all the way down to 0.0% and even that couldn''t stop their bleeding.

If you spend more than you earn, and you borrow money for consumables so you can''t possibly make a profit using that money; so you have no lawful means of paying any interest on the borrowned money, then sooner or later your profligate habits will catch up to you. So if you want to know who is driving up the price of gas at the pump, just look at the reflection in your hubcap to see the culprit.

[docpeter-2009]

RE: theroux1 wrote,"I really wish they would just raise the overall price of tickets. Way too many people are flying these days anyway. If you can''''t afford the fare then you should be taking Greyhound. Then the airlines could acually make some money and treat those of us who do fly as people again."

What a selv-serving comment.

[michellem99-2009]

ever taken the hound..We have..Ye can thank bush..Good God Allmighty. The greed..I have not flown since the 80s..From what I have READ it is worse today..there are more can''t than can..It is worse than jail. I was a spoon player in a band and the jail lady took my cane when we were playing music..she told me why..but this is greed and bush control. when I flew years ago the lady took my cane and she put it in a place safe. It also meant she have to take me to the rest room. THIS IS SAD THAT ONE MAN CAN CHANGE A NATION TO SUIT HIM AND HIM ONLY.

[hungry1968]

Perfect. I was trying to decide if I should drive to Chicago, or fly. (10 hour drive at $3.80 a gallon or 2-1/2 flight with 2 hours in security at the airport.)

Thanks for helping me make my mind up to drive!!

[rf35]

Travel in this country is becoming very Third World... the people in India who ride on top of trains may be onto something.... hmmmm....

Posted by dredre2k at 02:52 PM : Apr 28, 2008

Yes, America is well on its way to becoming a third-world country. While some would pin it solely on the Bush administration, there are multiple factors causing this. True, the buck stops with the President and he should bear the primary responsibility for this mess. But everyone from corporate executives to "Joe Average" has either actively assisted or allowed through complacency the rape of our economy. I truly hope the next president can at least begin to dig America out of this grave, but with so many still shoveling, it is a truly monumental task that awaits.

[theroux1]

I really wish they would just raise the overall price of tickets. Way too many people are flying these days anyway. If you can''t afford the fare then you should be taking Greyhound. Then the airlines could acually make some money and treat those of us who do fly as people again.

[davidlar2]

Maybe the airline will lose money on this, if the CEO gives himself a bonus for putting through the idea that is greater than the revenue raised....

[dredre2k]

Why don''t airline industries just eliminate seats and put in cattle rows... or start seating riders in the luggage compartment while charging a premium for cattle rows. Forget the passengers; It''s all about finding new revenue opportunities right?

So much for modern air travel. Travel in this country is becoming very Third World... the people in India who ride on top of trains may be onto something.... hmmmm....