Wed, Apr 16, 2008
Will Other Carriers To Follow Suit?
when is this gonna stop? Reacting to oil prices that topped $114 a
barrel earlier this week, United Airlines increased its domestic
fuel surcharge by $10-$20 roundtrip.
The fare hike, which went into effect late Tuesday, is on top of
a separate jump in United fares last week... which the airline said
was also intended to offset fuel expenses, reports The Associated
Passengers flying from areas where United had already imposed a
fuel surcharge will see that fee increased $10, to $35 one-way,
said United spokeswoman Robin Urbanski. Markets that had escaped
fuel surcharges before -- such as along routes where United faced
strong competition from low-cost providers -- will now see a $5 fee
added to one-way tickets.
United's announcement marked the 12th time this year airlines
have attempted to raise ticket prices throughout their networks,
according to FareCompare.com. Not all those hikes have been
successful, however... and site CEO Rick Seaney says it's 50/50
whether the latest one will stick.
"My gut tells me that this attempt may not make it," Seaney
said, noting four other attempted hikes have failed, "... but I
cannot rule out the possibility of major matching in the next five
United expects to spend an additional $2 billion in fuel charges
this year, Urbanksi said.
The stock market failed to react much to United's announcement,
as shares in the Chicago-based airline fell 14 cents in early
trading Wednesday, to $22.18.
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