At an internal meeting on Friday, American Airlines President Robert Isom told employees “every lost bag is nearly $60.” That amount was new to me.
In January alone American mishandled 74,975 bags, the most in the industry by far, and not any improvement over the prior year. At $60 per bag it cost American $4.5 million, and annualized at the same rate $54 million. Extrapolating similar costs for the industry would mean US carriers losing over $160 million a year to mishandled bags.











