American Airlines To Charge $15 To Check A Bag; $25 For Second

American Airlines upped the ante in ala carte pricing today when it announced that in the case of domestic tickets purchased on or after June 15th, it’ll cost $15 to check a bag for a domestic flight.  The airline already charges $25 for a second bag.

Is this a sign of things to come?

Let me state this clearly: This is just the beginning.  Expect other airlines to follow suit, just as they fell in line with the $25-for-a-second-bag rule not so long ago. 

As the other George Bush used to like to say, “It’s just this simple.”  Every major airline in the country except Southwest is expected to lose money in 2008.  This, after several emerged from bankruptcy with high hopes and lower labor costs. The culprit, of course, is the cost of fuel.  Delta and United's post-bankruptcy plan had a worst-case scenario of crude oil selling for $60 to $80 a barrel. Today, of course, that benchmark hit $130 a barrel. 

The only reason Southwest still knows what black ink looks like is that it’s had the cash to hedge fuel prices of years now, so it’s paying way-below-market value on most of its fuel.

Here’s the other truism: Airfare prices are going to rise this year month after month, if not week after week.  They simply must.  So if you know where you want to spend Thanksgiving . . . if you have a kid going far away to college later this summer . . . if you know when and where you’re going to want to fly for the December holidays, lock in a fare and reservation right now. Waiting will cost you perhaps hundreds of dollars, especially if there will be more than one of you flying.

Now, some American passengers will be exempt from this baggage charge.  Those flying on full-fare tickets, in business or first class, or gold, platinum and executive platinum members of American’s frequent flyer program won’t have to pay any luggage surcharge. 

The rest of us will have to go to our pockets.  American isn’t the first to do this—UK’s Ryanair begain charging for luggage way back in 2006.  But now let’s count the hours or days until American’s competitors file suit as airlines look for new revenue streams—beyond selling snack boxes, charging for curbside luggage check ins, and selling preferable seats 24 hours before a flight—to stay in business.

And let’s see how many of us get a lot better at packing carry-on bags.