HereWeGo
April 9, 2026 • 3 min read
American Airlines has recently decided to increase baggage fees and eliminate several benefits for low-cost travelers. Let’s explore these changes and their implications.
Understanding the Baggage Fee Increase
American Airlines has announced a $10 increase in baggage fees, following the lead of major airlines like United, Delta, and Southwest. However, what stands out is that they will charge an additional $5 for the same suitcase if you’re flying on a basic economy ticket. Starting May 18, AAdvantage members will no longer have the option for free seat selection, complimentary domestic upgrades, or systemwide upgrade confirmations on basic economy fares.
Changes to the Boarding Process
The boarding process will also see changes, with AAdvantage members being placed in a lower priority group. By the end of this year, they will drop from group 6 to group 7. Nowadays, being part of the program doesn’t offer the valuable benefits it once did, particularly when it comes to reserving overhead bin space to avoid waiting at the gate.
Falling Behind Competitors
This move brings American Airlines closer in line with other airlines in the industry—they’ve lost one of their unique advantages at a time when their products, services, and reliability are not keeping pace with Delta or United. Ironically, they have even fallen behind budget airlines like Spirit and Frontier, which continue to maintain benefits for premium customers regardless of the fare they pay.
Impact on Business Travelers
Business travelers are essentially leisure travelers as well. Those who spend on expensive midweek tickets often travel with family on weekends. American’s previous policies ensured that once you became a loyal customer, you would always be well taken care of whenever you boarded their flights. If you are a valued customer on every journey, it makes your business trips feel more worthwhile.
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Effect on the Relationship with Citibank
American believes it has retained its premium customers by requiring them to spend more on specific tickets. This may lead to reduced spending on the co-branded AAdvantage credit card. The airline’s core advantage—according to them—is their extensive route network and the value of the AAdvantage program. However, they are voluntarily diminishing the value of this advantage.
How Airlines Use Basic Economy Fares
Basic economy is a tool that airlines use not to make customers pay more but to differentiate pricing and sell tickets to budget-conscious travelers without lowering prices for those willing to pay more. By creating multiple inconvenient restrictions, they can still compete with Spirit and Frontier without slashing fares for all passengers.
Pressure from New Regulations
Since the launch of basic economy in 2017, American has continually adjusted its policies. Perhaps they’ve done this so frequently that they no longer feel the need to notify customers when changes occur. Passengers will discover these changes on their own as they travel.
Sudden Policy Changes
American has made numerous changes, from allowing basic economy passengers to carry on luggage to selling seats to basic economy customers. However, they have also eliminated several benefits that were previously maintained. The decision to stop awarding points on basic economy tickets in 2021 was a misstep, as this was a key way to attract new passengers to the AAdvantage program.
Conclusion: A Risky Move
American Airlines is gradually becoming a purely transactional airline. They no longer prioritize their relationship with customers over ticket prices. This shift carries significant risks and could undermine customer loyalty in the future.
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