UPDATE 1-US Airways to charge $25 to check second bag

(Rewrites first paragraph, adds background, executive comments)

CHICAGO, Feb 26 (Reuters) - US Airways Group Inc (LCC.N) said on Tuesday it will start charging $25 to check a second bag, making it the second major airline this month to tap into that revenue stream to offset high fuel costs.

The change, which takes effect May 5, is expected to generate $75 million in cost savings and new revenue. The fee applies to customers on all flights within the United States as well as flights to and from Canada, Latin America, the Caribbean and Europe.

The carrier said passengers may check one bag for free, adding that the fee will not apply to its most frequent customers who are members of certain loyalty programs.

United Airlines, a unit of UAL Corp (UAUA.O), earlier this month said it would begin charging $25 to check a second bag. The news irked some travelers who complained on blogs that the airline industry has gone too far in the unbundling of goods and services that used to be including in the ticket price.

"Some critics may call this another example of airline customers being 'nickel and dimed' for services that used to be provided as part of the flying experience," US Airways President Scott Kirby said in a statement to employees. "But the airline industry of 2008 is very different from the industry of 1998 or 1988, and we have to be realistic -- and innovative -- about our product."

Other industry experts agree that the additional fees are necessary and say other airlines will follow.

Shares of US Airways were up 9 cents to $13.79 in early trading on the New York Stock Exchange. (Reporting by Kyle Peterson, editing by Mark Porter)