American Air may charge $25 to check a second bag

CHICAGO (Reuters) - American Airlines, a unit of AMR Corp, said on Thursday it may start charging $25 to check a second bag, a move that could spur revenue and cost savings as fuel prices soar.

American, the world's largest airline, said it filed a notice with the Canadian government indicating it may change its bag fee structure in Canada. That country requires 45 days notice to review such a change.

"This filing is only a formality and a decision has not been made by American Airlines to implement a new checked bag fee structure in Canada," a company spokesman said.

If American were to begin charging to check a second bag, it would be the fourth major U.S. airline to make that change. UAL Corp's United Airlines, Delta Air Lines and US Airways Group Inc announced new fees earlier this year.

The airline industry has been battered by soaring fuel costs and low-fare competition that makes it difficult to raise ticket prices. As a result, airlines have been looking for ways to bolster revenue and cut costs.

One popular way to achieve these goals is by charging for items and services that used to be included in the fare. Airlines typically check two bags for free, but analysts forecast all the top carriers soon will begin charging for a second bag check.

American's filing in Canada did not indicate what routes the change might affect.

(Reporting by Kyle Peterson)