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3 Airlines Raise Fuel Charge

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The Tampa Tribune

Published: January 19, 2008

UAL Corp.'s United Airlines, Delta Air Lines and Continental Airlines have doubled their round-trip fuel surcharges in most U.S. markets to $40, matching an increase by AMR Corp.'s American Airlines.

The fee, a response to rising fuel costs, was $20 per round trip before the increase by American on Thursday. Delta added the charge late Thursday, and was joined Friday by Continental and United. The surcharge covers business and leisure fares but excludes flights in direct competition with low-fare airlines.

Friday's moves mean the surcharge is now in place at the four biggest U.S. airlines by passenger traffic, led by American, the world's largest. Jet fuel has surged 57 percent in the past year, topping labor as some carriers' largest expense.
Northwest Airlines and US Airways Group probably will match the higher fee this weekend, said Rick Seaney of Farecompare.com, which tracks ticket prices.

Northwest and US Airways are studying the increase, spokesmen said. To stay competitive, carriers generally drop price increases not matched by rivals.

United, Atlanta-based Delta and Continental, based in Houston, rank second, third and fourth, respectively, in the U.S. by passenger traffic.

The Associated Press

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