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| Bag charge plan hits US airline | |
| (about 4 hours later) | |
| American Airlines is to become the first major US carrier to charge passengers to check in a first bag. | American Airlines is to become the first major US carrier to charge passengers to check in a first bag. |
| The new fee of $15 (£7.50) comes as US airlines struggle with soaring fuel costs and a slumping economy. | The new fee of $15 (£7.50) comes as US airlines struggle with soaring fuel costs and a slumping economy. |
| The airline says it will also cut a number of its domestic flights and get rid of older, fuel-guzzling jets. | |
| International travellers will be exempt from the fee. American joined other US carriers last month in charging $25 for a second checked bag. | International travellers will be exempt from the fee. American joined other US carriers last month in charging $25 for a second checked bag. |
| Shares in AMR, the owner of American Airlines, tumbled by more than 24% to $6.22 on the news. | |
| Aviation industry analyst Terry Trippler said that it was inevitable airlines would look to offset higher costs and boost their profits. | |
| "When people say they are 'nickel and diming', I disagree," said Mr Trippler. | |
| "This is survival. They need to do what they can." | |
| Airline woes | Airline woes |
| Representatives from several other big US airlines said they were considering charging passengers for the first checked bag as well. | Representatives from several other big US airlines said they were considering charging passengers for the first checked bag as well. |
| A number of US airlines have gone out of business or filed for bankruptcy this year. | A number of US airlines have gone out of business or filed for bankruptcy this year. |
| American Airlines said rising fuel prices had increased its costs by nearly $3bn since the start of the year. | |
| On Thursday, the price of crude oil climbed to a new record of more than $135 a barrel. | |
| American Airlines-owner AMR made a net loss of $328m in the first three months of this year, compared with a profit of $81m a year earlier, and said the swing into the red was mostly down to high aviation fuel costs. | |
| American said it hoped to raise "several hundred million dollars" from the luggage fee and other new charges. | |
| Domestic flights are to be cut by 12% and thousands of job cuts are expected, says the BBC's Jonathan Beale in Washington. | |
| At the same time, the company will retire some 75 aircraft from its fleet, focusing on the least efficient planes. |