Summer travel sticker shock coming as airlines raise fares
Airlines are citing rising fuel costs as the reason for fare increases this week.
The four biggest airlines – American, United, Delta and Northwest — are among airlines raising rates.
United and Northwest raised fares 3$, while American and Delta raised fares 5$ each way.
Southwest Airlines Inc. resisted the move, with a spokeswoman saying the carrier had no intention of raising rates.
The reason for the increase: record high fuel charges.
“All the carriers are squeezed in a vise between lower yields and higher fuel costs,” United CEO Glenn Tilton said during a US House transportation subcommittee hearing on airline pensions.
He said fuel prices are approaching $60 a barrel.
“Not surprisingly, predictions that the US airline industry would return to profitability have not come true,” he added.
He estimated a dollar increase in the cost of an oil barrel costs the airline $80 million a year.
“This is a good way to cover some of that added expense,” he said.” We still have historically low air fares. Consumers are still getting a good deal.”
North of the US, both Air Canada and WestJet also cited fuel prices as the reason for hiking fares. Rate increases ranged from $6.50 to $15.
Report by David Wilkening
David
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