First bag flies free with Delta credit card

Perhaps finally some good news for airline passengers! The Associated Press reporting Delta will waive the first checked bag fee for those using its American Express credit card.

Starting June 1, Delta said it will waive the $25 each-way fee for up to nine people on the same reservation.

Delta collected $215 million from baggage fees alone in the first quarter. American Express spokeswoman Mona Hamouly declined to say whether the company is paying Delta to give up the first-bag fee for people who carry its card.

Michael P. Taiano, a credit card industry analyst at Sandler O'Neill & Partners, said a credit card company would probably have to pay for something like waiving the first-bag fee. "Clearly it's potentially a win for AmEx — you get more volume, and high-end volume at that," he said. And for Delta customers, the change would save $200 in bag fees for a family of four traveling round trip."A $200 swing is enough to get somebody to book their flight on Delta versus another carrier," Taiano said.

So would the savings be worth it to you to get a Delta credit card? And will other airlines feel the pressure to follow suit?