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At American Airlines, new flights may be subject to charges if clients alter their schedules.
The Congress is discussing a law that could deprive airlines of the right to charge additional charges, e.g. for changes to flights and additional luggage. When it happens, American Airlines would almost certainly eliminate the possibility for clients to modify their tickets if they buy a non-refundable plane, CEO Doug Parker said.
Large US airlines, such as American Airlines, currently levy a $200 amendment levy on non-refundable travel. If American Airlines wants to make changes to the schedule, it threatens to make those passengers who have already purchased non-refundable tickets buy a new one. According to the Associated Press, Doug Parker, chief executive officer of the airlines:
"We, like the ball teams, like the operas, would say: "We're sorry, it wasn't reimbursable. Parker's testimony comes as the House and Senate are negotiating a bill to re-approve the Federal Aviation Administration that would contain provisions depriving airlines of their authority to charge additional charges, such as for changes to flights and additional luggage.
Parker said that if the regulation becomes statute, American Airlines would almost certainly eliminate the possibility for clients to modify their tickets if they buy a non-refundable plane - the most favorable fares. "If adopted, the Act could modify the product airlines provide to passengers, such as the possibility to modify a non-refundable ticketing.
"Clients would still be able to modify their itineraries if they buy a reimbursable ticketing. "American Airlines is currently charging a $200 amendment on nonrefundable internal travel. Parkser said that it doesn't costs airlines $200 to modify a customer's ticketing, but to add to it. "We have a new item if you want to fix it, but it will hurt you because it will hurt us.
" Also, many other large US airlines levy a $200 amendment on nonrefundable travel. However, Southwest Airlines offers its clients the opportunity to modify or revoke their ticket free of cost. Airlines have generated additional charges of several billion dollars in recent years. U.S. airlines last year were charged $2.9 billion in exchange charges, with American Airlines accounting for $878 million, the largest share of all airlines, the Associated Press cited.
Charges for hold luggage also earned airlines an additional $4. 6 billion last year, the Wall Street Journal said - tenfold more than the $464 million that these charges collected ten years ago. Last year, the cost of raw materials rose by more than 50% and squeezed the profit of many airlines.
Enterprises across the sector have cautioned against passing the additional costs on to customers in the form of higher air fares and exchange surcharges. On Friday, American Airlines will also join Delta Air Lines and United Airlines to increase the charge for hold baggage from $25 to $30, in an industry-wide swing known as bundling.