American Airlines Adds New Fee, Gives Preposterous Reason

Companies love to take away services and make it seem like it's a positive.

"You can make your coffee exactly as you like it," is a nice way for a restaurant chain to say that it's not going to put milk and sugar into your cup of joe.

This trend has been accelerating as hotel chains in many locations are asking people to opt into daily cleaning (and sometimes offering them incentives not to). What was once the accepted standard of service has become something that many chains try to get out of by selling you on the idea that somehow less service is a positive.

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It's easy to see why companies like the idea of pushing more labor onto customers. If a fast food chain hands you a burger that you can customize at a toppings bar then it has lower labor costs. That's why Panera Bread and Starbucks  (SBUX) - Get Free Report don't butter your bagel for you -- it's not about you being able to spread the butter the way you like it.

Airlines have generally used a version of this argument to sell customers on the idea of economy fares. "You only pay for what you need" makes sense, until what you need isn't actually included in the basic price, so you end up paying more.

In many ways, that's what American Airlines (AAL) - Get Free Report is doing to some of its passengers.

American Airlines Adds a New Bag Fee 

Basic Economy means different things on different airlines and policies can even vary by route. United Airlines (UAL) - Get Free Report and Delta Air Line (DAL) - Get Free Report, for example, both offer one free checked bag on transpacific routes but charge a checked bag fee on long-haul transatlantic routes.  

American Airlines used to follow the same policy for its Basic Economy customers, but as of June 7, that has changed. Now, the airline will charge $75 for a first checked bag and $100 for each additional bag on transpacific flights to destinations including Asia, Israel, Australia, India, and more. 

Basic Economy passengers on American Airlines do get a carry-on bag and a personal item (some low-cost carriers charge for anything beyond a personal item like a purse or small backpack). It makes sense that American would charge for checked bags on all Basic Economy fees, but the company's way of selling it is insulting 

“We are simplifying our product offerings to make it easier for customers when they are shopping for travel. With this change, our Basic Economy product will include all of the same features whether a customer is purchasing it for a domestic or international itinerary," American said in a statement to The Points Guy.

In theory, having the same charge for all flights is simpler, but rationalizing a price increase that way insults the intelligence of the airlines' passengers. That's especially true when the simplification involves adding a charge for something that used to be free.

It's hard to think that paying for checked bags is somehow more simple than not having to pay.