American Airlines has announced an increase in checked baggage fees along with a reduction in certain perks for economy travellers, as rising jet fuel costs continue to put pressure on the aviation industry.

The airline has raised fees for both domestic and short-haul international flights. Passengers will now pay an additional USD 10 for the first and second checked bags. The cost of a third checked bag has also gone up by USD 50, taking it to USD 200, although this pricing was already applicable in some regions such as Canada.

In addition, travellers booking basic economy tickets will see further changes. Starting May 18, checked bag fees for these passengers will increase by an extra USD 5. They will also have to pay to select seats and will no longer be eligible for complimentary system-wide upgrades.

These steps come at a time when airlines are facing a sharp rise in fuel costs. Jet fuel prices, which were around USD 85 to USD 90 per barrel earlier, have surged to nearly USD 209 globally. This spike is linked to ongoing tensions in the Middle East, particularly disruptions in the Strait of Hormuz, a key route for global oil supply.

American Airlines is among the last major U.S. carriers to introduce such changes, as airlines look to manage increasing operational expenses while maintaining profitability.

However, passengers flying in premium cabins will continue to receive benefits such as free checked baggage on both domestic and international routes.

With these updates, the airline aims to balance rising costs while continuing to offer services across its network.