HeraldNet: American cuts capacity, adds bag charge



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Aerospace Blog

May 21, 2008

American cuts capacity, adds bag charge

Posted at 10:32 am by Michelle Dunlop

Ready to pay to check your bag when you fly?

I’m not talking about a fee for your second checked bag -- a recent trend in airline travel.

American Airlines announced today that it plans to begin collecting a $15 fee for many passengers’ first checked bag this June as it works to combat rising fuel costs.

The carrier is cutting capacity by up to 12 percent in the fourth quarter, slashing jobs and retiring jets (many of its MD-80s). Reuters has a report out on American this morning.

Boeing's Scott Carson said at an investors' conference this morning that American's move represents an opportunity for the company. Carson believes American will look at more fuel-efficient jets like the 737 Next Generation or the 787 Dreamliner as replacement jets for the MD-80s.

High fuel prices, coupled perhaps with uncertainty about American’s announcement, drove the Boeing Co.’s shares down $4 in early morning trading. Boeing’s stock hovered around $82.30, down $2.84 at 10:30 a.m. PST.

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