Beginning May 1, the airline will do away with free blankets and would charge $8 for a set of blanket and pillow.
The fee would be applicable to coach class in all domestic flights and some international flights longer than two hours on routes to and from Mexico, Canada, Hawaii, the Caribbean and Central America.
The $8 charge would buy a blue fleece blanket and an inflatable neck pillow that fliers can use in flight and keep for future use.
"American evaluates all aspects of the business to ensure that economic decisions are prudent and strategic for the long-term success of the company," the carrier said. Passengers on the carrier's international flights or in premium class cabins would continue to receive complimentary blankets for use in flight.
As airline revenues slumped due to the economic slowdown impacting air travel demand, airlines have been been increasing baggage fee and now charge for some in-flight amenities.
JetBlue Airways started selling blanket and pillow packs in 2008.
US Airways started charging for sleep kits last year. Last month, American Airlines had said it would increase fees for checked in baggage effective February 1.
The airline now charges $25 as against $15 earlier for the first checked bag and $35 instead of $25 for the second for travel within the United States, Puerto Rico and the US Virgin Islands.