If exorbitant airline fees have you reconsidering your travel plans, we have some bad news: American Airlines just announced that it's raising prices on checked baggage.
The new price structure, which marks the airline's first change since 2018, goes as follows:
- $35 for first checked bags purchased online for domestic flights, including to Alaska, Hawaii and Puerto Rico (up from $30)
- $40 for first checked bags on the same flights purchased at the airport (up from $35)
- $45 for second checked bags on domestic flights
- $35 for first checked bags to Canada and short-haul international flights
- $45 for second checked bags purchased online or at the airport to Canada and short-haul international flights
In a February 20 all Street Journal report, Scott Chandler, the airline's senior vice president of revenue management and loyalty, explained the reasoning behind the spike.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“Fuel is a big component—obviously the more bags we carry, the more fuel you’re burning,” he said. “The cost of handling bags across the board, from real estate, machinery, et cetera, has gone up. This is trying to match that.”
American Airlines did not immediately return a request for comment.
It's not all bad news, though. American is simultaneously lowering the amount it charges for overweight luggage, kind of. Now, instead of $100 to $200, customers with bags that weigh between 50-53 lbs will be required to pay $30, while those with bags between 53-70 lbs will continue to pay the higher fee.
Troubles in the sky
Despite the fact that overall, the cost of domestic travel went down in 2023, there have been many instances of overpaying, either in fees or time spent — including on American.
As Kiplinger previously reported, the airline was fined more than $4 million after the Department of Transportation (DOT) found it illegally made 5,821 passengers wait on tarmacs for hours at a time without letting them deplane. Spirit was required to pay more than $8 million over carry-on fees.
On the flip side, many airlines have done away with flight change fees, a holdover from the drop in revenue during the early days of the COVID-19 pandemic.
As airlines continue to slap on additional flight fees, there are some steps you can take to avoid costly airline fees and make travel a bit more affordable. These include booking your flight as far in advance as possible to take advantage of free seat selection, booking your flight online rather than over the phone, which can incur a fee, or to pick airlines that don't charge for checked baggage.
And if you happen to be looking for some of the best places to visit where the dollar is strong, check out our list of the top-10 from the Americas and Europe to Africa and Asia.
RELATED CONTENT
-
Will Utah Stop Taxing Social Security Benefits?Retirement Taxes Utah Gov. Spencer Cox wants to end the state's tax on Social Security income.
-
IRS Shakeup? What Trump's Commissioner Pick Could Mean for TaxesIRS An unconventional nominee comes amid broader efforts to reshape the IRS and tax policy in 2025.
-
Year-End Retirement Tax Planning Actions if You Have $1 Million or MoreConsider implementing these four strategies before December 31 to potentially improve your tax situation for this year and the future.
-
25 Financial Moves to Consider Before December 31Tidying up your financial house before the New Year kicks off will put you in a great position to have a financially satisfying and successful 2025.
-
Five Side Hustles You Could Turn Into a Full-Time BusinessYou might be able to capitalize on your expertise in ways you haven't thought of, possibly even leading to quitting your 9-to-5 job to do what you love.
-
Rebound in Jobs Growth Keeps Fed on Track: What the Experts Are SayingJobs Report No nasty surprises in the November payrolls data leaves a quarter-point cut in play.
-
Who Works to Make Your Insurance Work?Ensuring a smooth insurance process takes more than just your insurance agent or broker — many talented people are busy behind the scenes.
-
Amazon Prime Flight Deals Offers $25 Plane Tickets for Young AdultsAmazon partners with StudentUniverse to offer $25 flights to young adults with certain Amazon Prime accounts.
-
Three Charitable Giving Strategies for High-Net-Worth IndividualsIf you have $1 million or more saved for retirement, these charitable giving strategies can help you give efficiently and save on taxes.
-
The Wealth-Building Powers of Health Savings Accounts (HSAs)Health savings accounts could be the most underutilized wealth-building tool out there. Here’s who should use them and how to maximize their benefits.
