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American Airlines increases checked bag fees and trims economy benefits amid rising fuel prices

American Airlines has increased the cost of checked luggage for domestic and short-haul destinations, and reduced some perks for economy passengers. This is due to soaring jet fuel costs that are affecting the global aviation sector.

It is one of the few major U.S. carriers that has taken steps to protect margins, as operating costs are rising due to increased jet fuel prices. This was a result of tensions in Middle East, which disrupted shipping along the Strait of Hormuz. The Strait of Hormuz carries about a fifth of all global oil flows.

According to the International?Air Transport Association, jet fuel has risen to $209 per barrel globally from an average of $85 to $90 per barrel in February, before the Iran War began.

American Airlines announced that it would increase the fees for first and second checked bags by $10 for domestic and short-haul flights.

The price of a third bag has been increased from $50 to $200 for travellers. This pricing structure already existed in some places, like Canada.

American Airlines also announced an additional $5 "surcharge" on checked bags for customers with basic economy tickets. This will be effective May 18.

Basic economy passengers will also have to pay a fee in order to select a seat. They won't be eligible for free system-wide upgrades after May 18.

American Airlines has also announced that travelers who purchase tickets in premium cabins on domestic flights will receive free luggage. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shinjini Ganguli)

(source: Reuters)