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That'll Be Another $5

Flights may be getting cheaper, but the price to check luggage continues to soar.

American Airlines said today that fees would jump $5. The first bag will cost $15, up from $15. The second bag will cost $30, up from $25.

United Airlines, US Airways, Delta and Continental have all recently announced $5 increases as well.

It's been a tough season for airlines.

Summer is usually a peak travel time. But tight credit, rising fuel costs and declining revenue have cast a dark cloud over carriers.

This week Continental posted a second-quarter loss, while United and Southwest reported small profits.

And many of the "legacy carriers" -- aka the oldest airlines -- have little cash on hand. This week Standard & Poor’s Ratings Services placed American and United on "credit watch," citing concerns over their liquidity. Moody's Investors Service downgraded Southwest's credit rating because of its unsecured debt and other debt.

The profits of spring and summer typically brace carriers for the slow winter travel season. So there is bound to be turbulence ahead, say analysts.

--Kendra Marr

By Terri Rupar  |  July 24, 2009; 4:26 PM ET
Categories:  The Ticker  
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