American Airlines said Wednesday the fee for the first checked bag starts June 15 and that it would raise other fees for services ranging from reservation help to oversized bags. (File Photo) Photo Gallery>>>

    BEIJING, May 22 (Xinhuanet) -- American Airlines, struggling with record-high fuel prices, will cut domestic flights, lay off thousands of workers and begin charging 15 U.S. dollars for the first checked bag.

    America's largest carrier said Wednesday the fee for the first checked bag starts June 15 and that it would raise other fees for services ranging from reservation help to oversized bags. The other fees will mostly range from 5 dollars to 50 dollars per service, the airline said.

    Last month American announced it would join other carriers in charging 25 dollars for second bags checked for some passengers, but it wasn't immediately clear how Wednesday's announcement would affect that.

    Its proposed fee for a first checked bag would exempt people who belong to elite levels of its frequent flyer programs, those who bought full-fare tickets and those traveling overseas.

    Chairman and Chief Executive Gerard J. Arpey said he expects the new or raised fees will raise several hundred million dollars, but that was the best estimate he would give.

    The changes were being made to adapt to "the current reality of slow economic growth and high oil prices," Arpey said. He said the fees are an effort to get customers to pay for services they want.

    Arpey didn't put a figure on the layoffs, but when asked whether he expected the figure to be in the thousands he said yes.

    American plans to cut domestic flight capacity by 11 percent to 12 percent in the fourth quarter. American had previously expected fourth-quarter capacity to fall 4.6 percent from the same period in 2007.

    (Agencies)