Airlines Begin Climbing Aboard Delta's Fare Hike
Posted on: Friday, 9 May 2008, 00:00 CDT
By Trebor Banstetter, Fort Worth Star-Telegram, Texas
May 8--Several major carriers, including American Airlines, raised round-trip fares by $20 on the bulk of their flights Thursday, marking the 15th time airlines have attempted to raise ticket prices this year.
The latest fare hike began with Delta Air Lines, which added $20 to its fuel surcharge on many of its flights Wednesday evening, according to FareCompare.com, a Dallas firm which monitors airline fares. By Thursday morning, American, which is based in Fort Worth, began to match the price on many of their flights, said Rick Seaney, the firm's chief executive.
United Airlines also began raising prices Thursday afternoon, Seaney said, leaving Northwest Airlines, Continental Airlines and U.S. Airways on the sidelines.
"I would be surprised not to see all three of them match by the end of the weekend," Seaney said. The airlines are desperate to increase prices to offset the fast-rising cost of jet fuel.
"Leisure and business travelers on non-competitive routes, especially on routes over 1,500 miles, are paying $280 or more roundtrip since December 20, 2007," said Tom Parsons, chief executive of Bestfares.com, an Arlington travel company that scrutinizes ticket prices.
But he added that discount airlines, like Southwest Airlines, headquartered in Dallas, and AirTran Airways still have cheap prices available on many routes.
"We still see low cost airlines, such as Southwest, offering bargain-basement airfares as low as $58 roundtrip between routes such as Chicago and Indianapolis, Dallas and Tulsa, Houston and San Antonio," he said.
Jet fuel recently priced at $3.57 per gallon, up 76 percent from a year ago, according to the Energy Information Administration.
Of the airlines' attempts to raise fares this year, 10 have been successful, not counting the current attempt by Delta. Four other attempts to raise prices crumbled when at least some competitors didn't go along.
TREBOR BANSTETTER, 817-390-7064
AIRLINES' AIRFARE HIKES THIS YEAR
Airlines have raised fares several times this year, the latest attempt coming Wednesday by Delta. Here's a summary of the successful fare hikes and Delta's latest move:
* Jan. 3, United, $10
* Jan. 24, Continental, $20
* Feb. 22, United, $10
* Feb. 28, Delta, $10
* March 7, United, $10
* March 14, United, $4-$50
* April 9, United, $4-$30
* April 15, United, $10-$20
* April 24, United, $4-$70
* April 28, Delta, $10, $40
* May 7, Delta, $20 (tentative)
Source: farecompare.com
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Source: Fort Worth Star-Telegram (Fort Worth, Texas)
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