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Wed, Apr 16, 2008

UAL Hikes Fuel Surcharge As Much As $20

Will Other Carriers To Follow Suit?

Sheesh... 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 Press.

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 days."

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.

FMI: www.united.com

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