American Airlines is raising bag fees and changing how customers earn frequent-flyer points

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. carrier / ˈkær i ər / (n.) – a company that operates aircraft to move people or items from one place to another
    Example:

    International carriers canceled their flights because of the storm.


  2. elite / ɪˈlit / (adj.) – relating to someone or something that is the best
    Example:

    Anyone with an elite membership from this store will get special discounts and free items.


  3. premium / ˈpri mi əm / (adj.) – relating to something that has higher than the normal or usual quality
    Example:

    The apartment building is in a premium location.


  4. hit / hɪt / (v.) – to have or experience something such as problems, troubles, difficulties, etc.
    Example:

    Customers are hit with a late fee if they don’t pay on or before the due date.


  5. preferred / prɪ ˈfɜrd / (adj.) – liked or wanted more than another
    Example:

    Cash is the only preferred way of payment in small stores and restaurants.


Article

Read the text below.

American Airlines is raising the cost of checking bags and it is making other changes to push customers to buy tickets directly from the airline if they want to earn frequent-flyer points.


The airline said that checking a bag on a domestic flight will rise from $30 now to $35 online and $40 if purchased at the airport. The fee for a second checked bag will rise from $40 to $45 both online and at the airport.


American last raised bag fees in 2018.


American, based in Fort Worth, Texas, introduced bag fees in 2008—$15 back then—to cope with the rising cost of jet fuel. Since then, they have become a steady revenue source for most major U.S. carriers. American easily led the industry by raising $1.4 billion in bag fees in 2022, the last year for which U.S. Transportation Department figures are available.


The airline is also raising bag fees by $5 for short international flights including those to Canada, Mexico and the Caribbean—now $35 for the first bag and $45 for the second.


The airline will generally allow customers to check in at least one bag free if they hold elite status in American’s loyalty program, buy a premium-class ticket or use an American-branded credit card.


American will give a break to customers whose bags are slightly overweight or oversized. Instead of being hit with the full extra fee—ranging from $100 to $650—graduated fees will start at $30 for bags that are no more than 3 pounds (1.36 kg) or three linear inches over the limits.


At the same time, American announced that starting with tickets issued on May 1, customers will have to buy tickets directly from the airline or its partner carriers or from preferred online travel agencies if they want to earn points in its AAdvantage loyalty program. The airline said it will list the preferred travel agencies in late April. Corporate travelers won’t be affected. 


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • How do you think the increase in bag fees will affect passenger behavior (ex. travelers will pack lighter, they will avail of loyalty programs)? Why do you say so? Discuss.
  • American Airlines introduced bag fees in 2008. The price was $15 back then. Do you think the increase now is reasonable? Why or why not? Discuss.

Discussion B

  • Are customer loyalty programs or memberships common in businesses in your country? What do you think about these programs (ex. they are a good way to get discounts, they are just a strategy to get more profits)? Why do you think so? Discuss.
  • Do you believe that offering exclusive bonuses to customers with elite status creates unfair treatment among passengers? Why or why not? Discuss.