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American Airlines Raises Baggage Fees as Jet Fuel Costs Surge

Wall Street Journal US Business •
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American Airlines will charge passengers $10 more to check a first or second bag, bringing its fees in line with United, Delta and Southwest as the industry contends with a rapid run-up in jet-fuel prices driven by the Iran conflict.

Fuel costs have spiked 87% since the start of the year due to heightened Middle East tensions, squeezing airline profit margins. This latest move by American, which operates one of the largest fleets in the world, signals a broader industry shift where carriers are passing these costs directly to consumers rather than absorbing them.

Travelers flying on American will now pay $30 for two checked bags, a $10 increase from previous rates. Industry analysts expect this trend to continue, with more carriers likely to follow suit unless fuel prices stabilize. The fee hike comes as airlines face pressure to maintain profitability amid record-high fuel expenditures.