Negative American Airlines Changes
There were a couple of negative American Airlines changes that were announced today that I wanted to go over. The first one, an increase on checked bag fees, is annoying but can be avoidable. The second one, earnings lost on certain bookings, is less defined at this time and could be potentially huge. Let's dive into both of these changes and what it could mean for you.
American Airlines Checked Bag Fee Increase
As first reported by JonNYC, the bag fees on American Airlines spiked a bit and are now the most expensive fees domestically. Here are the new prices (on flights booked on / after 2/20/24):
This is an increase domestically, going from $30 to $40 for the first bag from $40 to $45 for the second bag. Flights to Canada and Mexico went from $30 to $35 for the first bag and from $40 to $45 for the second bag.
I should also note that the cabin pet fee also increased from $125 to $150.
You can get around the checked bag fees by carrying an American Airlines credit card. That perk alone could cover the cost of the annual fee for frequent American flyers.
Changes To American Airlines Earning From Third Party Bookings
What I think could potentially be the much worse of the two negative American Airlines changes is the third party bookings changes. American Airlines sent out an email saying the following:
When you book directly with American, you enjoy the best possible travel experience. It's simple to manage your trip online, receive travel credit for canceled trips and more.
Starting with tickets issued on May 1, 2024, we’re updating the way you earn AAdvantage® miles and Loyalty Points on flights depending on where you book.
How to earn miles and Loyalty Points
You’ll earn miles and Loyalty Points on flights when you:
- Book directly with American and our eligible partner airlines
- Book travel anywhere as an AAdvantage BusinessTM member or contracted corporate traveler
- Book through our preferred travel agencies
- Basic Economy fare tickets will only earn when booked directly with American and our eligible partner airlines.
Rest assured you can also continue to earn miles and Loyalty Points as usual through our non-airline partners, like the AAdvantage® eShoppingSM, AAdvantage HotelsTM and AAdvantage EventsTM platforms and more. Plus, earn on everyday purchases with an AAdvantage® credit card.
Here is a link to all of the details.
What Does This Mean?
The fact of the matter is that we won't know how bad this is, or how deep it goes, until late April when we see the list of approved agencies. Will places like Expedia, Travelocity and bank portals like American Express etc. be excluded? What about business travelers whose company books their flights via a travel agent for discounted rates? Will they now earn nothing for their butt in seat flying?
This could be potentially horrible, or not a huge deal at all. It will all depend on which agencies are, and are not, included. If they swing too far to the negative I could see business travelers running for the hills. Could you imagine flying every week for work and earning nothing in return for yourself? Especially if how you are booked is completely out of your control.
American also loses the chance to gain loyal flyers that are not enticed to sign up for the program when booking with outside agencies. That is if they block some of the bigger players of course. We should know more there in a few months.
Negative American Airlines Changes: ToP Thoughts
While the bag changes don't bother me personally, as someone with an American Airlines card and who usually travels with a carry-on, I could see it upsetting many. Going from $30 to $40 domestically is a big jump, and I find it crazy that the fee is higher than some international travel. The silver lining is that at least people have opportunity to avoid the fee all together, much less the increase.
As for the negative American Airlines changes to loyalty points and AA miles earnings, that could be really bad. We have to wait a bit to see where it lands when the dust settles, but I am not overly optimistic. It sounds like they want to go the route of hotels and block anything unless you book directly with American. Hopefully the bank portals are spared, otherwise higher bank portal redemption rates and points rebates mean a bit less going forward. You know other airlines will take the opportunity to follow suit too.
Let me know your thoughts on these changes over in the ToP Facebook Group.
