American Tightens Ticket Policy, Adds $100 Fee for Standby Flights

AMR Corp.’s American Airlines added a $100 fee for passengers with nonrefundable tickets who want to take another flight on standby, as the world’s largest carrier tries to stem losses.

The change is for tickets in the U.S. and Canada issued for travel on or after Jan. 1, the airline said.

American also is requiring passengers with nonrefundable tickets for U.S. flights to make any changes on or before the departure date. Such tickets will have no value after the departure date, the airline said.

The moves will enable American to reduce costs and compete with discount rivals, the Fort Worth-based airline said, without providing details.

AMR shares fell 29 cents to $10.19 in New York Stock Exchange trading. They have declined 54% this year.

Major U.S. airlines are raising some ticket fees and tightening restrictions to cut costs and increase revenue after losses of more than $3.8 billion in this year’s first half.

This week UAL Corp.’s United Airlines said it was tightening rules on upgrades and fare discounts and raising its fee for paper tickets to $20.

US Airways Group Inc., flying under bankruptcy protection, increased its paper-ticket fee to $25.

The company, the country’s seventh-largest carrier, said it would cut about 200 mainline US Airways flights and 100 daily US Airways Express commuter flights by Nov. 2 to reduce service to match lower demand.

The carrier’s plan to eliminate the flights, which account for about 13% of its daily schedule, was announced Aug. 21.

US Airways sought Chapter 11 bankruptcy protection Aug. 11, saying it was unable to reach agreement for cost reductions with some creditors, vendors and lessors.

The company had sought $1.3 billion in annual savings to restructure the airline outside of bankruptcy.

Its shares rose 9 cents to 70 cents in over-the-counter trading.