American Airlines raised the non-refundable fee last week for checking a bag on domestic flights, from $30 one-way to $35 or $40, depending if it’s paid online in advance.
So, that’s $70 to $80 for each full-size suitcase that accompanies you on a round-trip flight.
And woe to the traveler who checks a second piece of luggage. That would add another $90 to the cost of a round-trip on American, which operates at all of the major airports in South Carolina.
That’s money most travelers would rather spend on meals or hotel rooms, but the charge does not apply to everyone.
Those with high enough “status” in American’s hierarchy of frequent fliers (AAdvantage Gold or higher) get a free checked bag, or as many as three bags (AAdvantage Executive Platinum status).
For those of us without status, there’s a free and easy way to avoid bag fees for at least a year.
Like many carriers that have checked baggage fees — Southwest Airlines is among the few that does not — American waives the charge for the first checked bag on domestic travel for passengers who have, and book their flight with, the company’s branded credit card.
That could be the Citi/AAdvantage Platinum Select Mastercard, or one of two more costly options. And first-bag fees are not only waived for the cardholder but for up to four flying companions on the same reservation.
What’s the cost of having that credit card? Nothing, for the first year, so long as the monthly bills get paid on time and in full to avoid interest charges and late fees. The $99 annual fee is waived in year one.
Regular readers of this column know I like to take advantage — AAdvantage? — of credit card perks and sign-up bonuses. For those who avoid paying any interest charges, those perks and bonuses can really add up.
In this case the perk is the baggage fee waiver, which will save me some money, and the bonus is the 50,000 frequent flier miles I’ll get for signing up. That’s easily enough miles for a free domestic flight.
Note: Getting the sign-up bonus of 50,000 AAdvantage miles requires charging $2,500 in purchases within three months of opening the account.
This is not even close to the best credit card offers I have seen and used in recent years. Marriott (Chase) has offered five free hotel night awards for its Visa card ($95 fee), and two years ago a Southwest (Chase) offer involving a Companion Pass resulted in my wife and I taking nine free round-trip flights.
Hard to beat that, but the American Airlines offer came down to this: They’re going to give me something valuable to get me to try their credit card, and I’m not paying them anything in return.
Is that a terrible deal for American or card-issuer Citi? Not really, because the bag-fee exemption makes it more likely I’ll fly the airline, and the financial institution will get merchant fees on everything I charge.
A year from now, when they’ll want $99 to continue my membership for another year, am I going to pay it? Almost certainly not.
See, in year one I pay them nothing and get 50,000 frequent flier miles. In year two they’ll want $99, which I’ll have little incentive to pay.
There will surely be another attractive credit card sign-up offer to tempt me by then. I’ve been paying for flights and hotel stays this way for years.
Credit card users are roughly divided into two camps, with about half carrying balances and paying interest charges, and about half paying in full each month and avoiding interest charges.
Those in the first group need to focus on paying off their balances, of course. For many of those in the second group, having the right credit cards can be a money saver.
