American reveals higher bag fees, new basic economy restrictions – The Points Guy

American Airlines is joining its competitors and raising checked bag fees in a move that was hardly surprising after most of the airline industry did the same in recent days.

But American’s shakeup, announced Thursday, is the biggest we’ve seen so far in this wave of changes — and it goes well beyond bags.

The Fort Worth-based carrier is also tightening its basic economy policies. AAdvantage elite status members will lose their upgrade and seat selection perks when flying on the airline’s cheapest fares. And all other customers who book a no-frills ticket will have to pay more to check a bag.

“These changes are the result of the airline’s continuing evaluation of pricing and in light of the current operating environment,” the airline said in a statement to TPG Thursday.

The U.S. airline industry has scrambled over the past two weeks to hike baggage fees and policies amid the run-up in global oil and jet fuel prices, which has also led to sticker shock for travelers booking summer flights.

Here’s what to know about American’s changes.

American hikes baggage fees

Like most of the major U.S. airlines, checking a bag on American is getting more expensive. Beginning with tickets booked on Thursday, April 9, American will hike its baseline baggage price by $10 for customers’ first and second checked bags. These fees apply to all domestic U.S. and select short-haul international flights:

These fees match what Delta Air Lines, United Airlines and Southwest Airlines announced in recent days.

Customers’ third bag will now cost $200.

Basic

But American also added a twist: Going forward, if you book a basic economy ticket, you’ll pay $5 extra. That means if you purchase the discounted fare you’d be looking at $55 for your first bag ($50 if you pay ahead online) and $65 for your second piece of luggage ($60 if you prepay).

American is the first U.S. carrier to specifically charge basic flyers a higher fee for checked baggage.

Free baggage perks remain

Keep in mind, travelers who have elite status in the Fort Worth-based carrier’s AAdvantage loyalty program will maintain their free baggage perks, as will customers who carry an eligible cobranded credit card.

AAdvantage perks take basic economy hit

American didn’t just hike baggage fees, though. The airline on Thursday announced its latest round of cuts to the loyalty benefits (and exceptions) its frequent flyers can reap even when flying on a restrictive basic fare.

You may recall that just a few months ago the airline stopped letting AAdvantage members earn miles or status-earning Loyalty Points when flying basic. Now, elite status members will have some additional rules to contend with:

• AAdvantage elite status members will no longer be eligible for complimentary upgrades when flying basic. They also won’t be able to apply Systemwide Upgrades on these fares
• AAdvantage elites will no longer get complimentary seat selection — or access to the carrier’s Main Cabin Extra seats on basic fares.

Those changes will apply to tickets booked starting May 18.

Combined with the restrictions on miles and Loyalty Points revealed in December, American has, in a matter of months, shifted its basic economy product from one of the industry’s most lenient to one of its strictest. These changes will certainly give American loyalists reason to think twice — or reconsider altogether — before booking one of its skinny fares.

This move comes amid U.S. airlines shaking up their cheapest fare offerings with a wave of new rules and restrictions that have increasingly taken aim at customers’ loyalty benefits earned via status.

Boarding process tweak

American also announced one tweak to its boarding process. Starting “later this year,” the carrier said, AAdvantage members who don’t have elite status or a cobranded credit card will board in Group 7 when flying basic.

Status members and cardholders will maintain their boarding privileges even when traveling on a basic fare.