With oil prices hitting new records almost daily, the nation’s largest air carrier, American Airlines, announced drastic steps Wednesday to “remain viable,” including charging new fees for all checked baggage, slashing domestic flights and laying off thousands of workers.
It was one of the most extreme moves yet by a U.S. airline, and came as the price of oil jumped Wednesday to $133.17 a barrel, up $4.19.
Starting June 15 most American passengers must pay $15 for checking a single bag. That comes on top of the airline’s decision two weeks ago to charge $25 for a second bag.
American, the largest carrier at Los Angeles International Airport, said it was compelled to take the actions in what it called an “extraordinary” environment.
Other airlines are expected to take additional steps to fight the twin curses of rising oil prices and a weak economy, increasing prospects for higher fares and crowded planes as the busy summer travel season kicks into gear with the upcoming Memorial Day weekend.
Already, domestic airfares for summer travel are up 20% compared with a year ago, according to Farecast.com, an online travel search service. American said rising oil prices had increased its expected annual fuel costs by nearly $3 billion since the start of the year.
Just came back from my California trip on which I packed a sleeping bag, two pillows, change of clothes, wedding gift, computer, and toiletries–all in carry-on luggage. Plus, I bypassed the long lines at the ticket counter, getting my e-ticket by myself from the e-terminal and walking right on through through security to the gate.
But of course, I was only staying two nights.
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I can only imagine the delays when all the carry ons can’t be stowed away properly. What a mess!
Remember when you used to go to the doctor and have an annual check up? A flat fee and all tests, i.e. blood workup, were covered by the fee. Then they got on to charging for each test, and you supplied the blood and/or whatever. Once the airlines come up with these individual fees, it will read like your annual physical:
Example: airline ticket $500.00, baggage checking, $10 per bag, baggage handling $5.00 per bag, baggage inspection $5.00 per bag, baggage lifted on to plane $5.00 per bag (this is not considered handling as it calls for the worker to go above and beyond normal carrying of bag, so becomes a “special” fee), and it goes on. Now should the price of gas go down the fees will remain…….and just like the blood test – where you supplied the blood – you have to supply the bag…sigh
Nickel and Diming people to death is going to basically bring their own demise.
Nickle and diming people could eventually result in a lot of airline demise. I am old enough to remember the dedpression of the late thirties and WWII. People didn’t do much flying or driving then either. We survived then. In this time I am also seeing cars sitting in the driveway and on the lawn with big FOR SALE signs plastered to them. I wonder how many young people will do more walking and bicycling when DOD (dear old dad) says NO when asked for gas money?
As much as I hate to say this, I am not so sure that I blame the airlines for tacking on these additional charges. They have got to survive. The airfares are up substantially more than 20 percent; I recently looked at fares to the Twin Cities from here and for flights that I have taken for $300 in the past, the airline is now wanting about $800. The high cost of fuel is the killer here. It is going to destroy travel and do alot of collateral damage as well. We desperately need to be looking for alternative ways to fuel our vehicles of transit.