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Tue, Dec 23, 2003

American Announces Fuel Surcharge Hike

Sharp Increase Passed On To Passengers

Because of rising fuel costs, American Airlines announced today that it will increase its fuel surcharge by $3 one-way, $6 round trip, for travel in the domestic 50 States and travel between the U.S. and Canada. The increase is effective immediately.

The Dallas Morning News reports American paid $0.74 for a gallon of JP4 back in June. Now, the airline pays $0.90.

With the increase, the fuel surcharge now totals $13 one-way, $26 round trip, on applicable air fares. But will it stick? Perhaps not. Northwest has refused to go along with the surcharge increase. Neither have other carriers -- leading to the possibility that American, unwilling to stand alone on the increase, will repeal it.

FMI: www.amrcorp.com

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