By Jay L. Zagorsky (CNN) — Five out of the six biggest US airlines have raised their checked bag fees since January 2024. Take American Airlines. In 2023, it cost $30 to check a standard bag in with the airline; today, as of March 2024, it costs $40 at a US airport – a whopping 33% increase. As a business school professor who studies travel, I’m often asked why airlines alienate their customers with baggage fees instead of bundling all charges together. There are many reasons, but an important, often overlooked cause is buried in the US tax code. A tax-law loophole Airlines pay the federal government 7.5% of the ticket price when flying people domestically, alongside other fees.
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