AMR Corp.'s American Airlines has increased fees for checking bags last week, while all other full fare airlines, Delta Air Lines, Continental Airlines, US Airways and United Airlines have already implemented bag fees.

The airline said in a statement that the charge for a first checked bag will be $25, and a second piece will be $35. The prices will apply to coach fares in the U. S., Puerto Rico and U. S. Virgin Islands on tickets purchased on or after Feb. 1. Earlier the bag fee was $20 and $30.

The hike will be applicable on American Airlines, American Eagle and American Connection flights.

However, Southwest Airlines Co., the biggest discounter, has no charge on the first two bags. Many airlines are trying to generate income from luggage fees and fuel surcharges as the ticketing prices are kept highly competitive.

The spokesperson for the firm, Tim Smith said, "In order for us to be able to offer extremely low fares that cost-conscious travelers seek, we feel it's necessary to charge for services some use and some do not including paying for food onboard, paying for reservations assistance on the phone or booking online for free."

AMR Corp had earlier reported a third-quarter net loss of $359 million. As for the first nine months the net loss amounted to $1.12 billion.

United Airlines had fist major airlines which imposed the bag fee on the second bag in the spring of 2008. American then implemented checked bag fees on the first checked bag in May. American's elite AAdvantage members are exempted from the fees.