American Airlines relents on allowing carry-on bag with discount airfare

American Airlines is ending the carry-on bag fee for customers of its “basic economy” discount fare, caving in to pressure from competitors’ more generous policies. The change, which applies to domestic and short-haul international flights, takes effect Sept. 5, American said Thursday as it announced Q2 financial results. “It got to the point we weren’t competitive,” American CEO Doug Parker said. “When you get yourself in a position where a price-sensitive customer finds lower fares on truly competitive airlines, we have to take that under consideration. I think the right thing to do is get in line with the competition.” Delta’s version of basic economy allows a carry-on bag that fits in the overhead bin for no charge, in addition to a personal item that fits under the aircraft seat. Southwest lets passengers check two pieces of luggage with no fee, in addition to carrying on a personal item and one other bag. Airlines value the basic economy offering because many passengers who consider the fare end up buying a higher-price ticket. “The scope wasn’t as large as we had originally anticipated,” said Don Casey, American’s senior VP for revenue management. <br/>