DisAAdvantage: American Airlines Shakes Things Up
American Airlines announced several changes that will lead to reduced benefits and more expensive travel ahead for passengers. Here's a breakdown:
Increased Baggage Fees: Fees for checked bags are going up effective immediately for all new bookings. On domestic flights, the first checked bag will now cost $40 (or $35 when added online) and the second bag will cost $50. The silver lining is fees for overweight and oversized items will be slightly reduced.
Higher Pet-In-Cabin Fee: The fee for bringing pets in the cabin is increasing from $125 to $150 one-way.
New Restriction on Earning Miles: Starting March 1, 2024, passengers will not earn AAdvantage miles or loyalty points for bookings that are not made directly through AA or through preferred travel agencies. It is unclear which travel agencies will be considered “preferred”, but this could have significant ramifications for some major Online Travel Agencies (e.g., Expedia, Priceline, and potentially even Chase and American Express).
New Distribution Capabilities: Several months ago, AA changed the way they distribute ticket prices on their website and through third-party websites. As a result, booking directly through AA’s website is now oftentimes cheaper than booking through other platforms. This was not previously the case, as there was rate parity across all major booking platforms. Most significantly for TravelWealth members, this means AA may have a lower price than what American Express or Chase may offer.
We are actively monitoring these changes and will alter our recommendations and processes as necessary to make sure we are providing TW members with the best value and travel experience.
If I were to guess, I imagine the higher bag fees will eventually be adopted by AA’s competitors because I don’t foresee much consumer pushback. However, I don’t anticipate other airlines adopting the restrictions on earning miles or changing the pricing across platforms. Within the travel industry, AA is getting a bad reputation for these harsh changes, and I don’t anticipate the other airlines will want to draw the ire of Chase or Amex (who could potentially freeze AA out from bookings, which could result in a substantial loss of business). Overall, these changes are disappointing, and it will be interesting to see how consumers and other airlines respond.