DALLAS (AP) - American Airlines is changing the way it charges you to fly.
American will charge $68 or $88 more per round trip
for economy-class passengers who want a ticket that lets them check
baggage or change the reservation later without getting hit by another
fee.
The airline says it's responding to customer
complaints about fees, especially the charge - typically $150 - for
changing a reservation.
"This will eliminate the fear about what-ifs," said Rick Elieson, American's managing director of digital marketing.
American will still sell a basic fare without
protection against add-on fees "for the less-discriminating passenger
who is just looking for the cheapest way to get to where they've got to
go," Elieson said.
Travel experts mostly praised the change and predicted that other airlines will mimic it.
"A checked bag costs $50 anyway, so for $18 more
you get protection against change fees," said George Hobica, co-founder
of travel website airfarewatchdog.com. "If I had to check a bag anyway,
I'd do it."
American said Wednesday that it's selling the new
tickets on its aa.com website and through travel agents for flights in
the contiguous 48 states.
Here are the new categories in economy class:
- "Choice" tickets will be similar to the current
basic fare. If a passenger wants to check a bag or change the
reservation, there's a charge for that.
- "Choice Essential" fares will cost an extra $68
per round trip and include one checked bag, no additional fee for
changing the itinerary later, and early boarding.
- "Choice Plus," at $88 more per round trip, will
include a checked bag, no change fees and early boarding plus bonus
miles for frequent-flier purposes, standby privileges, a drink for no
additional charges and other perks.
American will continue to sell fully refundable
tickets in economy, which are usually more expensive. They offer the
benefits of the "Choice" fares and more. It also sells business- and
first-class tickets with many benefits.
All the fares are priced for round trips, a departure from American's usual display of fares on a one-way basis.
Henry Harteveldt, a travel analyst with business
consultant Hudson Crossing, said many travelers want to know exactly how
much their trip will cost, including all the add-ons.
"Overall, the approach is good," he said. "They're trying to move customers' focus from price to value."
There could be drawbacks for consumers. The experts
said that the new format will make it harder to do comparison-shopping
and to filter flight searches by departure or arrival time.
And customers won't find certain amenities, such as
economy seats with more legroom, in the "choice" fares. Harteveldt said
American must think it can still get a separate premium for those.
American isn't the first airline to bundle extras -
Air Canada already does it - but American started the stampede toward
extra fees by charging for checked bags in 2008, so its decision to
repackage extras is notable.
American earned $1.1 billion in baggage and change
fees last year, according to government figures. But the kitty is no
longer growing as much. American's haul from bag fees doubled from 2008
to 2010, but is up just 1 percent this year over 2011.
Elieson said the company is confident that it can
sell enough of the upgraded bundles to more than offset the fee revenue
American will lose because of the changes. He declined to give revenue
estimates.
American and parent company AMR Corp. have been
operating under bankruptcy protection for more than a year. AMR's CEO
said this week that the company is nearly done with its restructuring,
but he declined to say when it might emerge from bankruptcy court.
