The month before the pandemic American Airlines lost 75,000 checked bags. Incoming CEO Robert Isom told an internal group of American employees just after that that “every lost bag is nearly $60.”
- Annualizing that month’s baggage mishandling, American Airlines was losing $54 million per year by failing to deliver customer luggage on time.
- And using that same cost across the U.S. airline industry, it means carriers were losing $160 million per year mishandling bags.
Those losses could get even bigger because the Biden Administration plans to require airlines to refund check bag fees for bags that are delayed 12 hours (domestic, 25 hours international). Currently an airline can keep the bag fee as long as it eventually returns the bag.
When you pay for a big the implied service is that it will be delivered to baggage claim when your flight lands. Delta and Alaska both compensate customers when bags aren’t delivered within 20 minutes of arrival. Alaska pioneered this and Delta competes aggressively with them in Seattle. American only manages bad delivery within 20 minutes 63% of the time at its Miami hub.
Here’s an important tip when checking your bags with American: if you’re forced to standby for a flight at the gate, your bags will not make it. That’s not just playing the odds, it is literally how American’s systems are designed.
American’s “Deviate” (DV8) system reroutes bags. If your itinerary changes, and you have bags checked, a new tag for your bag gets printed when the bag is scanned. However this only gets triggered if you have to be checked in for your new flight with a seat assignment for the bag to get rerouted. If you stand by at the gate, or you’re rebooked without a seat assignment, your bag isn’t going with you because there’s not going to be enough time for American to locate the bag and get it onto your plane after you’ve been given your boarding pass.
On September.8, I flew Qatar Airways, Yerevan Armenia to DOHA . Luggage was checked to MIA. I had a 5 hour layover, then took Qatar, to Miami.
Upon arrival, in MIA, I was told my luggage was still in DOHA.
My luggage was delivered to my next stop, on September 23, two weeks later. All my clothes were in the suitcase.
After numerous requests, regarding compensation, fell on blind eyes at Qatar. Never heard from them.
It was my first and last booking with Qatar Airways, who brag about being the #1 airline in the world.
It begs the question, “how”?
I have banned my executives, from using it.
I would love to see this figure independently audited; it smells that Enron (or FTX) accounting was used.
But if it’s true (which I doubt) the incompetence of AA is legendary.
And for sure other airlines are not as bad (you even say yourself on the article when you compare AA’s dismal performance to DL and AS), so your own math is even more Enron/FTX-like.
Thought LEADER in trave? Not even an attempt at validating numbers? Sounds more like mindless PR shill.
They’re not losing any $, given how much they earn on bag fees
@Robert, the airlines play the no-answer game to claims. I am a Senator with Lufthansa. They lost my bag for 3 days and I had to make purchases. Sent the claim to them twice for the purchases. The ignored me. I filed a complaint with the US DOT and within 45 days I had my money. I encourage everyone to file complaints with the DOT.
Another indication that we need a stronger version of EC261 that would include mishandled luggage here in the USA.
Is it really lost? Or is a lot of lost luggage stolen? Does “lost” imply it was or was not even recovered?
Lost luggage? Interesting.
Well, someone or some entity, has found a lot of “lost” luggage, and/or “items in the luggage”, or claim to, and offer it online.
Maybe it’s just their way, to draw attention to the subject line. And, whatever their way of obtaining it, it’s very expensive.
It may also, be a way of fencing stolen things. ??
The truly lost bags cost more than $60, but a misdelivered bag has to be routed to the correct airport and then couriered to the destination. I only had this happen once, and the courier must have been a fortune, as they had to be shipped from Calgary to Jasper.
But the one typo of “American only manages *bad* delivery in 20 minutes 63% of the time in Miami” really tickled my funny bone.
Jake.
Figures lie and liars figure!
Years ago, I was interviewing candidates, for CFO. Three CV ‘s were selected.
I asked the first one, “How much is 2 and 2”? Answer: “4”.
Second candidate, same question. Answer: “That depends”.
Third candidate, same question. Answer: “What do you want it to be “?
TrvlGuru
Much appreciated.
“Those losses could get even bigger because the Biden Administration plans to require airlines to refund check bag fees for bags that are delayed 12 hours (domestic, 25 hours international). ”
Good. If I pay a premium for a bag, I expect an equitable level of service. Of course, I could always stop payment if they refuse to provide the service I paid for.
Believe it or not, AA’s bag metrics were much much worse prior to the check bag fee.
Robert that is an income tax joke. Don’t take it from accoutants