American slashes jobs, add check-in fee
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The airline is also reducing domestic capacity by 12% and adding a $US15 fee to check a single bag, the first in the US.
American Airlines executives were quoted saying that they had little choice but to impose such fees, given that the price of jet fuel was up more than 80% from a year ago.
“Our company and industry simply cannot afford to sit by hoping for industry and market conditions to improve,” American’s Chief Eexecutive, Gerard Arpey, was quoted saying at a shareholder meeting, New York Times reported.
The airline’s new policy, taking effect from June 15, comes only two weeks after many major carriers, including American, began charging US$25 each way for checking a second bag.
Other major American airlines were quoted saying they would consider matching the fee. “We’re doing everything we can do to boost revenue, but it’s not our goal to nickel and dime our customers,” a Southwest spokeswoman was quoted saying.
Airline shares were battered yesterday as oil surged to a record US$133.17 a barrel. Stock in American’s parent company fell over 24%.
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