General Lee
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AP
U.S. Carriers Raise Fares by $10 to $20
Friday May 13, 5:30 pm ET
By Brad Foss, AP Business Writer U.S. Carriers Raise Airfares by $10 to $20 Roundtrip in Most Markets, Stung by Rising Fuel Costs
In an effort to stem huge losses, the big U.S. airlines increased their domestic ticket prices heading into the weekend by $10 to $20 roundtrip, depending on the length of the flight.
Stung by high fuel prices, the industry has attempted to raise fares on many occasions over the past year. Only in the past few months have the price increases stuck, however, as passenger demand rises and fewer seats become available.
Some routes are definitely up," said Bob Harrell of New York-based Harrell Associates, which tracks fares. But the growth of low-cost carriers has kept average fare levels under pressure, with business fares down 32 percent from a year ago and leisure fares up just 10 percent, Harrell said.
The latest round of fare increases was launched by AMR Corp.'s American Airlines, which increased ticket prices systemwide on Wednesday night by $2-$6 roundtrip. Delta Air Lines Inc. upped the ante on Thursday by raising roundtrip fares by $10 to $20. American then mimicked Delta Friday morning, according to AMR spokesman Tim Wagner.
By Friday afternoon, the moves were matched to one degree or another by Northwest Airlines Corp., UAL Corp.'s United Airlines, US Airways Group Inc., America West Holdings Corp. and Continental Airlines Inc., Wagner said.
Carriers generally decide over the span of a weekend whether or not to make the fare changes permanent. This particular fare increase is different than previous efforts in that the carriers raised fares by $2-$6 on routes where they compete with low-cost carriers, Wagner said.
Harrell, the fare analyst, said that while systemwide changes usually affect every route, the cheapest fares in the bucket aren't usually affected. "They're just too competitive," he said.
Carriers have blamed the high price of jet fuel and the encroachment of low-cost carriers for their travails, which have included more than $30 billion in losses since 2001 and bankruptcy filings by United and US Airways.
At $1.51 per gallon on the New York spot market, jet fuel is about 21 percent more expensive than a year ago.
Bye Bye--General Lee
U.S. Carriers Raise Fares by $10 to $20
Friday May 13, 5:30 pm ET
By Brad Foss, AP Business Writer U.S. Carriers Raise Airfares by $10 to $20 Roundtrip in Most Markets, Stung by Rising Fuel Costs
In an effort to stem huge losses, the big U.S. airlines increased their domestic ticket prices heading into the weekend by $10 to $20 roundtrip, depending on the length of the flight.
Stung by high fuel prices, the industry has attempted to raise fares on many occasions over the past year. Only in the past few months have the price increases stuck, however, as passenger demand rises and fewer seats become available.
Some routes are definitely up," said Bob Harrell of New York-based Harrell Associates, which tracks fares. But the growth of low-cost carriers has kept average fare levels under pressure, with business fares down 32 percent from a year ago and leisure fares up just 10 percent, Harrell said.
The latest round of fare increases was launched by AMR Corp.'s American Airlines, which increased ticket prices systemwide on Wednesday night by $2-$6 roundtrip. Delta Air Lines Inc. upped the ante on Thursday by raising roundtrip fares by $10 to $20. American then mimicked Delta Friday morning, according to AMR spokesman Tim Wagner.
By Friday afternoon, the moves were matched to one degree or another by Northwest Airlines Corp., UAL Corp.'s United Airlines, US Airways Group Inc., America West Holdings Corp. and Continental Airlines Inc., Wagner said.
Carriers generally decide over the span of a weekend whether or not to make the fare changes permanent. This particular fare increase is different than previous efforts in that the carriers raised fares by $2-$6 on routes where they compete with low-cost carriers, Wagner said.
Harrell, the fare analyst, said that while systemwide changes usually affect every route, the cheapest fares in the bucket aren't usually affected. "They're just too competitive," he said.
Carriers have blamed the high price of jet fuel and the encroachment of low-cost carriers for their travails, which have included more than $30 billion in losses since 2001 and bankruptcy filings by United and US Airways.
At $1.51 per gallon on the New York spot market, jet fuel is about 21 percent more expensive than a year ago.
Bye Bye--General Lee
