AA Raises Basic Economy Transatlantic Checked Bag Fees… Now?!
Apr 22, 2020, 7:28 am
#1
Original Poster
Join Date: Jan 2008
Location: Boston
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AA Raises Basic Economy Transatlantic Checked Bag Fees… Now?!
https://onemileatatime.com/american-...cked-bag-fees/
"for tickets purchased as of today (April 21, 2020), American Airlines has raised checked bag fees for transatlantic basic economy passengers. This applies to those checking bags between Europe, Israel, Morocco, and the US, Puerto Rico, US Virgin Islands, Canada, Mexico, the Caribbean, Central America, and South America.
Again, this is specific to those purchasing basic economy fares, which don’t come with a checked baggage allowance (or free seat assignments, upgrades, etc.). For those passengers, the cost of the first checked bag is increasing from $60 to $75."
"for tickets purchased as of today (April 21, 2020), American Airlines has raised checked bag fees for transatlantic basic economy passengers. This applies to those checking bags between Europe, Israel, Morocco, and the US, Puerto Rico, US Virgin Islands, Canada, Mexico, the Caribbean, Central America, and South America.
Again, this is specific to those purchasing basic economy fares, which don’t come with a checked baggage allowance (or free seat assignments, upgrades, etc.). For those passengers, the cost of the first checked bag is increasing from $60 to $75."
Apr 22, 2020, 8:49 am
#2
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Posts: 13,913
AA assumes that people flying BE International must fly or really want to fly and therefore will pay additional fees. AA correctly presumes that a lot of summer discretionary travel is already toast. Therefore AA is trying to squeeze what that it can out of people that are going to fly.
Apr 22, 2020, 9:51 am
#3
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Location: DCA
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Posts: 50,262
Anyone who thinks that Covid-19 will result in lower fares, fees or other concessions, has this wrong.
Travel for the next 18-24 months will likely be by people who really want to travel (as opposed to right now when it is "absolutely must" travel. Those passengers are more likely price insensitive and will pay the $75 if they need to check a bag, so the fee gets charged.
This is exactly the time when a fee increase will not affect net --- stress net --- revenue.
Travel for the next 18-24 months will likely be by people who really want to travel (as opposed to right now when it is "absolutely must" travel. Those passengers are more likely price insensitive and will pay the $75 if they need to check a bag, so the fee gets charged.
This is exactly the time when a fee increase will not affect net --- stress net --- revenue.
Apr 22, 2020, 11:34 am
#4
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Anyone who thinks that Covid-19 will result in lower fares, fees or other concessions, has this wrong.
Travel for the next 18-24 months will likely be by people who really want to travel (as opposed to right now when it is "absolutely must" travel. Those passengers are more likely price insensitive and will pay the $75 if they need to check a bag, so the fee gets charged.
This is exactly the time when a fee increase will not affect net --- stress net --- revenue.
Travel for the next 18-24 months will likely be by people who really want to travel (as opposed to right now when it is "absolutely must" travel. Those passengers are more likely price insensitive and will pay the $75 if they need to check a bag, so the fee gets charged.
This is exactly the time when a fee increase will not affect net --- stress net --- revenue.
Why do you think it will have no effect?
Apr 22, 2020, 3:17 pm
#5
Join Date: May 2015
Posts: 674
These fees are supposed to save people money...while also bringing in more revenue?
Simple math, it's one or the other, not both.
Apr 22, 2020, 4:02 pm
#7
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It increases revenue because it attracts people who would not fly AA if that fare did not exist.
If it didn't increase revenue for AA, AA would not have BASIC
Apr 22, 2020, 5:06 pm
#8
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Join Date: Jul 2003
Posts: 23,062
It increases revenue because the majority of people opt for main cabin fares (according to stats disclosed by airlines). This could be because they have status and care about EQM earnings, or want advance seat assignments, or flexibility to change flights, etc. For those who don't care that much about those things and are just looking for cheapest price, it can save money.
Apr 22, 2020, 6:16 pm
#11
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Apr 22, 2020, 6:47 pm
#12
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This is a bad move PR wise and I hope they get slammed for it.
Apr 22, 2020, 6:56 pm
#13
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Posts: 44,602
If the airline is in financial difficulty, apart from asking for assitance, it needs to start helping itself too
If Basic Economy fare + $75 is more expensive than an economy fare, then pay the economy fare
Apr 22, 2020, 7:50 pm
#15
Join Date: Feb 2005
Location: ROA / CLT
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Posts: 801
From the business point of view, now probably seems like the ideal time to slide in some price increases while few people are traveling to notice the change.
I understand Disney has done the same sort of thing, raising prices on their theme park restaurant menus while the parks are closed. I'm sure they figure almost no one will remember what the prices were before the closures (though die-hard fans have noticed the changes on the online menus).
I understand Disney has done the same sort of thing, raising prices on their theme park restaurant menus while the parks are closed. I'm sure they figure almost no one will remember what the prices were before the closures (though die-hard fans have noticed the changes on the online menus).