Saturday, June 21, 2008

American Airlines

Just reading through the USA Today and I see that starting today American Airlines will begin charging a $20 fee when frequent flyer miles are redeemed. This marks the first time that AA will not be offering "Completely" free tickets in exchange for airline miles. This is a continuing theme in the airlines as they find ways other then price increases to pass along increased fuel costs to their customers. This new charge is in addition to new Baggage Regulations which went into effect in May 2008.

Although these fee's as an individual charge are not crushing, it is when you add them up with other day to day expenses that the effects start making there way to the consumer. Will this stop someone from taking a quick flight for a few days away....probably not, but cumulative effects may prevent the consumer from turning over his car, purchasing new appliances or redecorating the family room.

So far the U.S. consumer has once again proven to be exceptionally resilient. Does it continue only time will tell.

Good Luck and Good Currency Trading.



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