American Airlines basic economy to allow free carry on bags

An
American Airlines Airbus A319.
Airbus

• American Airlines will allow
  basic economy ticket holders a free carry on bag beginning
  September 5.
• The airline announced the policy change during its
  second quarter 2018 earnings call.
• American Airlines CEO Doug Parker cited the need to
  make basic economy more competitive in the marketplace and
  consumer-friendly as the reasoning behind the change.

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American Airlines will soon allow free carry-on bags for its
basic economy tickets. The Fort Worth, Texas-based airline made
the announcement on Thursday during its second quarter 2018
earnings call.

Beginning September 5, American will allow basic economy tickets
holders a free carry-on bag as well as the personal item already
permitted on board.

American Airlines CEO Doug Parker cited the need to make its
basic economy product more competitive and consumer-friendly as
the reasoning behind the policy change. 

“Basic Economy is working well in the markets where we
offer it, and we continue to see more than 60 percent of
customers buy up to Main Cabin when offered a choice,” company
president Robert Isom said in a statement. “Removing the bag
restriction will make Basic Economy more competitive, allowing us
to offer this low-fare product to more customers.”

American, Delta, and United all offer an unbundled basic
economy offerings as a means to compete for budget-conscious
consumers that would otherwise fly with
ultra-low-cost carriers likes Spirit or Frontier. American’s
updated carry-on bag policy will bring it in line with Delta Air
Lines. As a result, United will be the only one of three that
restrict basic economy ticket holders to just a personal
item. 

American Airlines reported a second-quarter profit of $566
million, down from $864 million during the same period last year.
The airline cited increasing fuel prices and a costly technical
failure at its PSA Airlines subsidiary for the lower
profitability. 

The airlines spent an addition $593 million on fuel during
the quarter and expect to spend an additional $2 billion for
the year.