Yet Another Airline Hikes Baggage Fees

American Airlines has jumped on the baggage-fee bandwagon. The carrier on Thursday became the latest major US airline to lift checked-bag fees, bumping the first and second checked bags by $10 on domestic and short international routes, the Wall Street Journal reports. Pay at the airport and you'll shell out $50 for the first bag and $60 for the second; pay in advance and each drops by $5. The fee for a third checked bag on US flights jumps $50 to $200. The new prices apply to tickets booked on or after Thursday. As usual, elite-status customers and many holders of American's co-branded credit cards will still get at least one checked bag free.

Travelers on American's Basic Economy fares face even higher charges starting May 18: $55 for the first checked bag and $65 for the second, again with a $5 discount for prepaying. The move follows similar increases by United, Delta, JetBlue, and Southwest, as carriers lean on luggage revenue to help cover higher fuel costs. Jet fuel is the second-biggest expense for airlines, after labor, and it's not clear whether the fee hikes will be enough to cover steep fuel price rises caused by the Iran war, CNBC reports. The Journal notes that while airfares tend to rise and fall with demand, luggage fees don't generally come down after they are raised.