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Thread: American to charge for checked bags

  1. #1
    Registered User trinidarkie is offline
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    American to charge for checked bags

    Big steups!!!!!!!!!!!!!!!!!!!!!!!

    Slammed by soaring oil prices, the biggest US airline is cutting domestic capacity, cutting staff -- and increasing fees for everything from reservations services to pet travel. American won't be alone.

    Latest Market Update
    May 21, 2008 -- 16:30 ET
    [BRIEFING.COM] On Wednesday, the stock market posted a steep loss for the second straight session. A lowered economic outlook at the Fed and a spike in crude prices weighed on sentiment.

    The FOMC released the minutes from its April 30... More

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    E-mail to a friendTools IndexPrint-friendly versionSite MapArticle IndexDiscuss in a Message BoardDigg This By Elizabeth Strott
    Flying just got more expensive.

    AMR's (AMR, news, msgs) American Airlines announced this morning that, as of next month, most passengers will have to pony up $15 for their first checked bag.

    American Airlines said the move, a potential game-changer for the industry, is part of an effort to deal with the skyrocketing price of oil.

    Crude closed at a new high of $133.17 a barrel in New York, up 3.3% from Tuesday, and traders pushed it to $134 a barrel in after-hours trading. Crude is up 38% this year and more than 200% since the end of 2004.

    Crude's gains and a signal from the Federal Reserve that it is done cutting interest rates combined to batter stocks. The Dow Jones Industrial Average finished down 227 points, or 1.8%, to 12,601. The Dow has lost 427 points in the last two days, its worst two-day loss since Feb. 28-29.

    American also said that it will cut U.S. capacity -- the number of available seats per miles flown -- by 11% to 12% in its fourth quarter compared with the same time period last year. That's far more than the 4.6% reduction American had forecast just one month ago.

    Talk back: Most ridiculous airline fees

    "The airline industry as it is constituted today was not built to withstand oil prices at $125 a barrel, and certainly not when record fuel expenses are coupled with a weak U.S. economy," said AMR Chairman and CEO Gerard Arpey in a statement.

    Shares of the airline plunged 24% to $6.22 on the day. Other airline stocks fell in sympathy. UAL (UAUA, news, msgs), parent of United Airlines, was down nearly 30% to $8.15, and Continental Airlines (CAL, news, msgs) fell 13% to $14.20.

    The Amex Airline Index ($XAL.X) was down 12% to 18.71.

    Airlines clobbered by surge in oil
    American made its decision with crude oil at $125, and matters got worse as the day wore on.

    "Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve," Arpey said. "We must work to overcome our near-term challenges and to secure our company's long-term future."

    MSN Travel: A rough summer for air travelers

    American said today that the capacity changes will result in the airline retiring at least 75 jets and cutting an unspecified number of jobs at both American Airlines and American Eagle Airlines.

    Stock Charts (Year)
    AMR

    UAL

    Continental Airlines
    The soaring cost of jet fuel, which has surged more than 80% in the past year, is "making things very difficult for the airlines," said analyst Ray Neidl of Calyon Securities. With fuel costs so high, he added, airlines have few options to make money.

    "At this point, airlines are looking for ways to obtain additional revenues," Neidl said. Because consumers want low airfares, airlines are now charging for other aspects of a flight, like inflight meals, he said.

    Neidl predicted that other airlines will follow American's lead.

    On a broader level, Neidl said it will take significant upheaval to ease the industry's pain. "One way would be for a major airline to go bankrupt and liquidate. A second way would be a merger in the industry, and a third would be for each airline to significantly cut capacity," but that is not likely to happen, Neidl said.

    Other fees for fliers
    American said today it also has boosted other fees, including those for reservation services and bringing pets aboard planes. The increases range from $5 to $50 per service, American said. In late April, American and other airlines announced that they would charge as much as $25 for a second checked bag.

    Get free, real-time stock quotes on MSN Money

    "While we understand that these fees affect customers, we also believe that our pricing for the services we provide remains extremely competitive in the industry and continues to offer our customers ample choice and value," Arpey said. "The bottom line is that our revenues, which include ticket sales and fees, must keep pace with our increasing costs."

    More from MSN Money
    10 sneaky airline fees
    The death of the airline meal
    What if gas cost $10 a gallon?
    Delta, Northwest set to merge
    Jubak: RIP, ExxonMobil?
    Big Oil's big 'problem'
    The checked-bag fee is effective for tickets purchased on or after June 15.

    The fee does not apply to American's AAdvantage Gold, Platinum and Executive Platinum members, nor to customers who purchase full-fare tickets in the economy, business and first-class cabins. International itineraries, except to and from Canada and U.S. territories such as Puerto Rico and the U.S. Virgin Islands, are also exempt from the fee, the airline said.

  2. #2
    God is my pilot Shandy 2.0's Avatar Shandy 2.0 is offline
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    I AM SICK AND TIRED OF BEING NICKELED AND DIMED BY THESE FU.CKING AIRLINES! THEY'RE PIRATES!!!
    "Create the highest, grandest vision possible for your life, because you become what you believe." - Oprah Winfrey

    "If you keep believing in yourself and seek enthusiasm inside your soul, things will get simpler, more spontaneous." ~Paulo Coelho

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    the floor each morning the devil says:
    "Oh Crap, She's up!"

  3. #3
    ~N.A.T.T.Y Valos~ Val3nie2debone's Avatar Val3nie2debone is offline
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    Quote Originally Posted by trinidarkie View Post
    Big steups!!!!!!!!!!!!!!!!!!!!!!!

    Slammed by soaring oil prices, the biggest US airline is cutting domestic capacity, cutting staff -- and increasing fees for everything from reservations services to pet travel. American won't be alone.

    Latest Market Update
    May 21, 2008 -- 16:30 ET
    [BRIEFING.COM] On Wednesday, the stock market posted a steep loss for the second straight session. A lowered economic outlook at the Fed and a spike in crude prices weighed on sentiment.

    The FOMC released the minutes from its April 30... More

    advertisement
    Article Tools
    E-mail to a friendTools IndexPrint-friendly versionSite MapArticle IndexDiscuss in a Message BoardDigg This By Elizabeth Strott
    Flying just got more expensive.

    AMR's (AMR, news, msgs) American Airlines announced this morning that, as of next month, most passengers will have to pony up $15 for their first checked bag.

    American Airlines said the move, a potential game-changer for the industry, is part of an effort to deal with the skyrocketing price of oil.

    Crude closed at a new high of $133.17 a barrel in New York, up 3.3% from Tuesday, and traders pushed it to $134 a barrel in after-hours trading. Crude is up 38% this year and more than 200% since the end of 2004.

    Crude's gains and a signal from the Federal Reserve that it is done cutting interest rates combined to batter stocks. The Dow Jones Industrial Average finished down 227 points, or 1.8%, to 12,601. The Dow has lost 427 points in the last two days, its worst two-day loss since Feb. 28-29.

    American also said that it will cut U.S. capacity -- the number of available seats per miles flown -- by 11% to 12% in its fourth quarter compared with the same time period last year. That's far more than the 4.6% reduction American had forecast just one month ago.

    Talk back: Most ridiculous airline fees

    "The airline industry as it is constituted today was not built to withstand oil prices at $125 a barrel, and certainly not when record fuel expenses are coupled with a weak U.S. economy," said AMR Chairman and CEO Gerard Arpey in a statement.

    Shares of the airline plunged 24% to $6.22 on the day. Other airline stocks fell in sympathy. UAL (UAUA, news, msgs), parent of United Airlines, was down nearly 30% to $8.15, and Continental Airlines (CAL, news, msgs) fell 13% to $14.20.

    The Amex Airline Index ($XAL.X) was down 12% to 18.71.

    Airlines clobbered by surge in oil
    American made its decision with crude oil at $125, and matters got worse as the day wore on.

    "Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve," Arpey said. "We must work to overcome our near-term challenges and to secure our company's long-term future."

    MSN Travel: A rough summer for air travelers

    American said today that the capacity changes will result in the airline retiring at least 75 jets and cutting an unspecified number of jobs at both American Airlines and American Eagle Airlines.

    Stock Charts (Year)
    AMR

    UAL

    Continental Airlines
    The soaring cost of jet fuel, which has surged more than 80% in the past year, is "making things very difficult for the airlines," said analyst Ray Neidl of Calyon Securities. With fuel costs so high, he added, airlines have few options to make money.

    "At this point, airlines are looking for ways to obtain additional revenues," Neidl said. Because consumers want low airfares, airlines are now charging for other aspects of a flight, like inflight meals, he said.

    Neidl predicted that other airlines will follow American's lead.

    On a broader level, Neidl said it will take significant upheaval to ease the industry's pain. "One way would be for a major airline to go bankrupt and liquidate. A second way would be a merger in the industry, and a third would be for each airline to significantly cut capacity," but that is not likely to happen, Neidl said.

    Other fees for fliers
    American said today it also has boosted other fees, including those for reservation services and bringing pets aboard planes. The increases range from $5 to $50 per service, American said. In late April, American and other airlines announced that they would charge as much as $25 for a second checked bag.

    Get free, real-time stock quotes on MSN Money

    "While we understand that these fees affect customers, we also believe that our pricing for the services we provide remains extremely competitive in the industry and continues to offer our customers ample choice and value," Arpey said. "The bottom line is that our revenues, which include ticket sales and fees, must keep pace with our increasing costs."

    More from MSN Money
    10 sneaky airline fees
    The death of the airline meal
    What if gas cost $10 a gallon?
    Delta, Northwest set to merge
    Jubak: RIP, ExxonMobil?
    Big Oil's big 'problem'
    The checked-bag fee is effective for tickets purchased on or after June 15.

    The fee does not apply to American's AAdvantage Gold, Platinum and Executive Platinum members, nor to customers who purchase full-fare tickets in the economy, business and first-class cabins. International itineraries, except to and from Canada and U.S. territories such as Puerto Rico and the U.S. Virgin Islands, are also exempt from the fee, the airline said.
    So basically the poor asses like me and countless others have to spend money we doh have eh?!?! Very nice, good thing I don't travel with AA, anyone else wanna follow suit, their asses getting dismissed too.

    What's good for the goose should also apply/be good for the gander.
    "What lies behind us and what lies before us are tiny matters compared to what lies within us."

  4. #4
    God is my pilot Shandy 2.0's Avatar Shandy 2.0 is offline
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    Quote Originally Posted by Val3nie2debone View Post
    So basically the poor asses like me and countless others have to spend money we doh have eh?!?! Very nice, good thing I don't travel with AA, anyone else wanna follow suit, their asses getting dismissed too.

    What's good for the goose should also apply/be good for the gander.
    Yep, they nickle and dime the economy class people and the rich get off free. *STEUPS*

    Can these airlines at least leave us with some money left to spend on vacation??? WTF???
    "Create the highest, grandest vision possible for your life, because you become what you believe." - Oprah Winfrey

    "If you keep believing in yourself and seek enthusiasm inside your soul, things will get simpler, more spontaneous." ~Paulo Coelho

    "I find your lack of faith disturbing" - Darth Vader

    Be the kind of woman that when your feet hit
    the floor each morning the devil says:
    "Oh Crap, She's up!"

  5. #5
    T-MAKAA
    Guest
    Hmm interesting.. Good thing I got my own Private Jet 2 months ago.

  6. #6
    Registered User marabunta is offline
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    MudderfuKKKerZ will make you pay for the air you breath in their Focking plane.......SOON!

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