Wed, Mar 31, 2004
Airlines Give Up On Surcharge Increase
ATA started it and a
whole bunch of air carriers joined in -- a $5.00 increase in the
fuel surcharge tacked onto the price of a one-way fare. But three
major airlines have decided it just won't fly. So American, United
and US Airways have repealed the increase.
Airlines like Continental, which is sticking with the higher
passenger fee, probably won't do so for long, according to www.bestfares.com
editor Tom Parsons. He told Bloomberg News that airlines "are just
not going to be able to stand up to this. They're going to have to
It's the eleventh time major airlines have tried to increase
their fares over the past three months. In each case, low-fare
carriers refused to climb on board, forcing a rollback.
"Nobody can afford to lose market share," said Thom Nulty,
aviation consultant for The Corporate Solutions Group, a travel
advisory firm in Orange County (CA), in an interview with the
Fuel costs are up 18-percent from a year ago at this time.
Friday, Continental CEO Gordon Bethune warned higher fuel costs
would erase his company's profit this year and probably drive up
operating costs by $450 million.
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