Continental Matches, Others Probably Will Too

That cramped middle seat to Fargo, and game of checked luggage roulette, is about to cost you a bit more. Responding to a week of record oil prices, on Friday United Airlines announced it has hiked its fares as much as $50 for a round-trip ticket.

United's move was quickly matched by rival -- and rumored merger partner -- Continental Airlines. US Airways was considering a similar hike in fares, according to an airline spokesman.

They likely won't be the last. On Thursday, the price for a barrel of crude oil closed at an all-time high of $111... and while prices subsided somewhat during Friday trading, it's more likely things will get worse before they get better.

This latest fare hike is the fourth in two weeks, according to CNN, and the second prompted by United. What makes this one especially noteworthy is the amount; previous fare increases have held around $10 per round-trip.

Not surprisingly, airlines justify the hikes by pointing to the high price of oil. "Fuel is our highest expense. The cost of it clearly continues to rise," said United spokesperson Robin Urbanski. "We must be able to pass along these costs just like other businesses do."

Trips under 500 miles will cost fliers about $10 more round-trip, with journeys longer than 1,500 miles costing as much as $50 more... especially between city pairs like Atlanta and Seattle, or Boston and Denver, where United faces little competition from other carriers.

"It's like the jump in (oil prices) has totally changed the playing field," said Rick Seaney, CEO of FareCompare.com. "They obviously have some metrics that say, 'these are our less competitive markets."'

FMI: www.united.com, www.continental.com