United Getting Desparate - Raising Fares on Int'l Flights

[On Your Six]

Not surprising given the high fuel costs. We'll see if others match the 5% fare hike on international routes - competitors might not knowing that UAL is hurting bad and try to take more market share... Read below:


United Raises Fares on Int'l Flights
Wednesday June 30, 5:44 pm ET

United Airlines Raises Fares on International Flights by Five Percent, Citing Rising Fuel Costs


CHICAGO (AP) -- United Airlines announced a 5 percent fare hike Wednesday on most flights to international destinations from the United States, citing rising fuel costs as the reason.

The increase is the latest of numerous attempts by U.S. carriers this year to try to have passengers share the burden of soaring jet-fuel prices. Last month, United rescinded a $10-per-round-trip fuel surcharge on most North American fares after only a day when American Airlines was the only competitor to follow.

Delta Air Lines spokeswoman Peggy Estes said the Atlanta-based carrier was considering a similar hike but was still reviewing United's action.

"Escalating fuel prices are a growing concern throughout the airline industry," said John Tague, executive vice president of Elk Grove Village, Ill.-based United, a unit of UAL Corp. "We must take the necessary steps to manage our exposure to this unprecedented rise in expense." United, which hasn't turned a profit in four years, is under intense pressure to raise revenue as it tries to emerge from Chapter 11 bankruptcy. Its nearly two-year effort to obtain federal assistance ended in failure this week when the Air Transportation Stabilization Board rejected its request for a $1.1 billion loan guarantee

 

[skykid]

So, since CAL has led the charge to raise fares several times lately, does that mean they are desperate too?

 

[On Your Six]

We'll see if it sticks when the competition lowers their fares...

 

[General Lee]

You might as well raise fares $5 on routes that have no competition. UAL flies from ORD to Beijing, Osaka, Hong Kong etc.... without competition---I am sure there are other city pairings. Heck, make it $10 each way. Delta should do the same on JFK to Moscow, Athens, Istanbul, etc---no one really wants the alternative--Aeroflot, Olympic, or Turk.


Bye Bye--General Lee

 

[N2264J]

Re: United Getting Desparate...

...no one really wants the alternative--Aeroflot, Olympic, or Turk.

Actually, Aviation Week and Space Technology is reporting that Aeroflot is going to be the new Skyteam member.

 

[General Lee]

True dat. But, our service is still better to Moscow. They will have to come up to standards to join the Skyteam fully. We would have a corner on that market---and that one is growing.


Bye Bye--General Lee

 

[Boeingman]

But NWA, true to form, will not match the hikes and they will be rescinded. Interesting how their management won't match yet cry about their revenues and are pressing for concessions from the pilots.

What is more incredulous is that NWA ALPA doesn't seem to mind their management kills every fare hike proposed to date while continuing to engage in talks.

 

[On Your Six]

I agree about NWA - the party spoiler.... They are not doing so hot themselves and yet the keep bringing even small price increases down.

 

[skykid]

From On Your Six,
We'll see if it sticks when the competition lowers their fares...


When is that going to happen? Looks like Northwest just matched.

 

[pilot1704]

I think that all the airlines should raise their ticket prices!

I think that if all the airlines in country raises their prices at least 10$ each way , we would be in much better situation.

Personally I think that ticket prices has gone too low. I think people should pay to be able to fly and also I think that flying should be treated with little more respect.

If pax don't want to fly because of 10$ price hike , maybe they should take greyhound then.

I wish that media would speak for airlines and not against them all the time.
Seems like noone never complains about buss fair increases or train tickets or even subways.

Maybe we can collect few $$$ here and write good artickle about this situation.
Personally I live in NYC. I took buss one day and was talking with driver and he told me that he made over 80000$ last year. I was about to faint, started to piss me offffff.

 

[skykid]

pilot1704, I don't think it is pax holding prices down, but airlines. This is a big game of chicken.

 

[SMMustang]

From On Your Six,
We'll see if it sticks when the competition lowers their fares...


When is that going to happen? Looks like Northwest just matched.

Reference?

 

[flap operator]

NWA has only been the spoiler because they are smart about raising fares. They actually raised fares nearly every time another airline has led the charge. The thing that NWA does is raise fares that people are actually buying. They also raise the fares that are too low. Why should NWA raise already expensive business fares? Why should NWA raise the "rack rate" that nobody ever buys? NWA raises sale fares and fares where they believe a fare increase will be revenue positive. That's only business and I think NW is being more responsible about their fare increases than the others. It's too bad for the other guys that their leaders forget their running a business that is incredibly price sensitive. Too much of a fare hike can backfire and end up causing more revenue losses.



FO