Monday, May 26, 2008

American Airlines to Charge $15 for Checked Bag

1st\NW Quadrant The Approval Matrix

American Airlines will start charging $15 for the first checked bag, cut domestic flights and lay off workers — probably in the thousands — as the nation's largest carrier grapples with record-high fuel prices.

American plans to cut domestic flight capacity by 11 percent to 12 percent in the fourth quarter, after the peak summer season is over. The carrier was previously planning a 4.6 percent cut.

American said rising oil prices have increased its expected annual fuel costs by nearly $3 billion since the start of the year.

American said Wednesday that the fee for the first checked bag starts June 15, and it will raise other fees for services ranging from reservation help to oversized bags. Those fees could cost between $5 to $50. -- Yahoo! News

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