But Curiously, Airfares Increase As A Result...

In explaining to consumers why all the new ala carte fees were required, airlines pointed to market resistance to the higher fares which would be necessary to cover their increased costs for fuel. Now that fuel costs have fallen again, a curious thing is happening to fuel surcharges.

Airlines in the US last week eliminated or significantly reduced fuel surcharges on many domestic routes... but increased their base fares by a comparable amount. An analysis by FareCompare.com for USA Today shows many travelers are paying the same as before the change.

American Airlines was among the first to eliminate fuel surcharges on most domestic flights. As an example, a round-trip flight on American from Dallas/Fort Worth to Washington, DC, booked 14 days in advance, had a base fare of $680 dollars, plus a $170 fuel surcharge, for a total of $850.

The surcharge has now been removed, but the base far has now jumped to... you guessed it... $850 with no added surcharge.

Rick Seaney, CEO of FareCompare.com, says the change will provide "a bit more transparency" in prices, and adds what may be obvious -- that the fuel surcharges were not so much about fuel, but "had everything to do with competition and the need to raise ticket prices."

US Airways spokeswoman Valerie Wunder appears to concur. She advises consumers that what really matters is the overall cost of a flight, not whether part of it is called a "surcharge."

"We still need to be able to charge enough for our product to be profitable, and we aren't there yet."

FMI: www.aa.com, www.farecompare.com