It appears that if you check any bag on American Airlines it will cost you $15/bag.  This rule will go into effect June 15th of this year.

This comes on the heels of United Airlines announcement that for every second bag checked an extra $25 will be charged.  Other airlines including American and Delta have followed United Airlines lead in charging for the second bag which went into effect May 15th. 

We knew this was coming with rising gas prices, airlines can’t allow people to bring aboard as much luggage as they desired.  But I am guessing that soon other airlines will follow American’s lead and charge for any bag checked.

The problem is the fine balance between supply and demand.  If airlines raise the prices of fares, people won’t travel as much.  Business travellers will look at other alternatives or cheaper airlines.  Families will drive instead of fly.

Thus the airlines are trying to tack on fees which might not seem like a big deal, but adds up quickly.  Not only that but airlines will also likely cut services to less desirable airports making some locations prohibitive to visit.  Along with the increase in baggage fee, American Airlines is shrinking it’s domestic airline service by 11%.  That’s 1/10 of the current volume.

The reduction in flights is expected to cause layoffs of pilots, stewardesses, cleaning crews, etc.  Everyone involved with maintaining and flying those routes will be in trouble.  This is bad news for our already troubled economy.  The increased fares, less jobs, and more restrictions I predict will have people reconsidering driving to business meetings.  While gas is expensive it’ll be cheaper than flying, more flexibility and less delays.

 So will you drive or fly more?