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DALLAS—Continental Airlines Inc. said it will charge
some coach customers $15 for the first checked bag after
determining the fee didn’t erode demand at other
carriers and would help counter elevated fuel costs.
The
policy applies immediately for travel starting on or
after October 7, the Houston-based airline said Friday
in a statement. Continental, the fourth-largest US
airline, also reduced some mileage awards for frequent
fliers.
Continental’s move adds to the number of fees and price
increases carriers are tacking on to cover a 49-percent
jump in the cost of jet fuel, the industry’s largest
expense, during the past year. Delta Air Lines Inc. is
the only major US full-fare carrier that doesn’t charge
for a first checked bag.
“We
didn’t see more customers switching to Continental as a
result of not adding the fee, so we feel it’s the right
competitive move,” Julie King, a Continental
spokeswoman, said in an interview. “It’s also another
measure to help defray fuel costs.” Continental didn’t
disclose how much revenue the fee is expected to
produce.
The
carrier follows American Airlines, United Airlines, US
Airways Group Inc. and Northwest Airlines Corp. in
charging passengers to check one bag. Among discounters,
Southwest Airlines Co. and JetBlue Airways Corp. don’t
have a first checked bag fee.
Continental’s first- and business-class passengers are
exempt from the baggage fee, as are the airline’s most
frequent fliers, those paying full coach fares and
military personnel and their families traveling on
official orders. The fee applies only on flights in the
US and between the US and Puerto Rico, the US Virgin
Islands and Canada.
The
airline will reduce bonus miles awarded to platinum and
silver elite-class frequent fliers. As of January 1,
Continental will also eliminate its minimum award of 500
miles per trip for flights of less than 500 miles,
instead giving actual distance.
Mileage
awards will be increased for travel between North
American cities and Tel Aviv and Hawaii and Tel Aviv to
make it consistent with the airline’s other long-haul
flights, King said. (Bloomberg) |
