American Airlines is rallying after saying it will raise bag fees (AAL, DAL, JBLU, LUV, UAL)
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American Airlines surged more than 4% Friday after announcing it will raise baggage fees.
The airline has joined Delta Air Lines and United Airlines in raising the price of passengers' first checked bag to $30 and a second checked bag to $40.
Delta Air Lines, United Airlines, Southwest Airlines, and JetBlue also gained ground following the news.
Airline stocks are rallying after the last of the world's three biggest carriers hiked baggage fees.
Shares of American Airlines jumped more than 4% on Friday after it joined Delta Air Lines and United Airlines in raising the fee of one checked bag from $25 to $30. A second checked bag will cost $40. The changes take place starting Friday, and are the first hike by American since 2010, according to a press release.
Piggybacking the move, Delta Air Lines gained 3.13% while Southwest Airlines added 2.11%. United Airlines and JetBlue were both up less than 1%.
On August 27, JetBlue became the first major US airline to raise prices for a checked bag. Similar price hikes by United and Delta more recently implemented.
American shares were down 18% this year.
Markets Insider
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