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American Airlines is rallying after saying it will raise bag fees (AAL, DAL, JBLU, LUV, UAL)

Varada Bhat
american airlines

Scott Olson/Getty Images

Airline stocks are rallying after the last of the world's three biggest carriers hiked baggage fees.

Shares of American Airlines jumped more than 4% on Friday after it joined Delta Air Lines and United Airlines in raising the fee of one checked bag from $25 to $30. A second checked bag will cost $40. The changes take place starting Friday, and are the first hike by American since 2010, according to a press release.

Piggybacking the move, Delta Air Lines gained 3.13% while Southwest Airlines added 2.11%. United Airlines and JetBlue were both up less than 1%. 

On August 27, JetBlue became the first major US airline to raise prices for a checked bag. Similar price hikes by United and Delta more recently implemented.

American shares were down 18% this year.

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