American Airlines said today it will start charging $15 for the first checked bag, cut domestic flights and lay off workers as it attempts to cope with record-high fuel prices.
The nation's largest carrier said the fee for the first checked bag starts June 15 and that it would raise other fees for services ranging from reservation help to oversize bags. The charge for a second checked bag will remain at $25.
American also plans to cut domestic flight capacity by 11 to 12 percent in the fourth quarter. American had previously expected fourth-quarter capacity to fall 4.6 percent from the same period in 2007.
AMR expects to retire 45 to 50 planes from its fleet, most of them gas-guzzling MD-80 aircraft. Those were the planes grounded for faulty wiring last month.
American said rising oil prices have increased its expected annual fuel costs
by nearly $3 billion since the start of the year.
