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American Airlines to increase passenger charges
Beijing News.Net
Thursday 22nd May, 2008
American Airlines has reported it will cut thousands of jobs, retire old aircraft and charge passengers for baggage in a move to counter record fuel prices.
The world's largest airline has said it will reduce service on domestic routes in the fourth quarter.
The airline plans to charge US$15 for the first checked bag starting in mid-June. The rule will not apply to international flights, some of its reward program members, or people with full-fare tickets.
Chief Executive Gerard Arpey has said the airline was not built to withstand oil prices at US$125 a barrel.
He told shareholders at the company’s annual meeting: 'The industry will not and cannot continue in its current state.'
He said American said it would take at least 75 mainline and regional aircraft out of its aging fleet, including some of its old MD-80s, which were grounded last month because of maintenance issues.
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