American Air raises bag fees as industry total tops $33 billion

American Airlines Group Inc. is raising the cost to check bags, just as an annual report shows the amount airlines collected from such fees last year grew to an estimated $33.3 billion.

The global baggage fee total rose nearly 15% from 2022 and exceeded the amount collected in pre-pandemic 2019 for the first time, according to data released Tuesday by IdeaWorks Co. and CarTrawler, which provides real-time rental car prices and availability to consumers. Such charges made up 4.1% of global airline revenue last year, the report said. 

Bag fees were just part of the estimated $117.9 billion airlines took in during 2023 for ancillary items that also included things like assigned seats or snacks purchased in flight, according to the IdeaWorks, CarTrawler report. Global bag fees totaled $32.9 billion in 2019. 

At American, for flights booked on or after Feb. 20, the charge will be $35 for the first checked bag if paid online, up from $30, for domestic flights, including Alaska, Hawaii, Puerto Rico and the US Virgin Islands. The first checked bag will cost $40 if paid at the airport, also an increase from $30. The second bag will be $45, a $5 boost. 

“We haven’t adjusted domestic bag fees since 2018,” said Scott Chandler, American senior vice president for revenue management and loyalty. “We’re just trying to match inflationary costs” linked to delivering bags that the carrier has experienced. 

The first-bag fee will rise to $35 from $30 for short-haul international flights including those to Canada. The fee for a second bag goes to $45 from $40, whether it is paid online or at the airport. 

AAdvantage frequent flyer members with status will continue to be able to check bags at no cost, and most AAdvantage credit card holders can check a first bag for free on US flights. 

American also said Tuesday that starting with tickets issued on May 1, most customers will earn AAdvantage miles and loyalty points if they book flights directly with the carrier or certain partner airlines, or through preferred travel agencies that the carrier will name in late April. Bookings through corporate travel managers that have agreements with American and AAdvantage Business members also will earn loyalty miles or points.