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CO Now Charges Fees For High Fuel Prices  
User currently offlineStartknob From Germany, joined May 2004, 156 posts, RR: 0
Posted (10 years 7 months 6 days 21 hours ago) and read 2974 times:

Just in CNN (3min. ago):
Continental adds price surchage per leg $10 for flights <1000 miles, $20 else. Reason: High oil prices.



When playing cat and mice it's imperative to know, who's the cat.
17 replies: All unread, jump to last
 
User currently offlineDoug_Or From United States of America, joined Mar 2000, 3442 posts, RR: 3
Reply 1, posted (10 years 7 months 6 days 21 hours ago) and read 2969 times:

i never understood this. When fuel prices are low they don't give us a fuel rebate. If costs rise, raise prices.


When in doubt, one B pump off
User currently offlineAIR757200 From United States of America, joined Jul 2000, 1579 posts, RR: 7
Reply 2, posted (10 years 7 months 6 days 21 hours ago) and read 2949 times:


costs rise, raise prices

Same thing happens with any other industry.


User currently offlineCODC10 From United States of America, joined Jul 2000, 2462 posts, RR: 6
Reply 3, posted (10 years 7 months 6 days 21 hours ago) and read 2939 times:

Looks like a monthly thing. Continental's put out a fuel-driven fare increase around the 20th of each month since February.

User currently offlineArtsyman From United States of America, joined Feb 2001, 4745 posts, RR: 34
Reply 4, posted (10 years 7 months 6 days 19 hours ago) and read 2902 times:

Fuel is at a ridiculous price. If you follow all the world meters, and relate them all to each other, then airline fuel should be about 58 cents. Continental thought that due to war etc, that fuel prices would average around 68 cents for the year, and thus predicted on that level, they would reach profitability for the year. Well, today the price of jet fuel hit 1.14. It is way over priced, and it is hurting all airlines worldwide. Qantas, and a few others just hiked fares / fees also. Thus far, quite a few of the majors in the US have matched the hike.

The European carriers have a slight advantage over the US carriers in regards to fuel due to the fact that jetfuel and oil in general is priced in US dollars, and the US dollar is currently very weak against the Euro/Pound thus the European carriers are paying a lot less for fuel than the American carriers.

J


User currently offlineCba From United States of America, joined Jul 2000, 4531 posts, RR: 3
Reply 5, posted (10 years 7 months 6 days 19 hours ago) and read 2868 times:

Yeah, fuel surcharges are a bitch, but it's either that or the airline ceases to be profitable. Many of the airlines are currently doing poorly, and although CO is breaking even, they still need to be cautious.

User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 6, posted (10 years 7 months 6 days 14 hours ago) and read 2801 times:

Ok let me ask.......

Since I ALREADY purchased my ticket for flying to SEA this upcoming Christmas season, will UA charge me for a fuel tax when I check in at the gate even though I paid for my ticket before the fuel crisis started? Can airlines charge people the fuel tax at time of check-in even though the reservation was made and purchased before March 2004?



A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineHa763 From United States of America, joined Jan 2003, 3671 posts, RR: 5
Reply 7, posted (10 years 7 months 6 days 14 hours ago) and read 2790 times:
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Tickets already paid for are not subject to any additional fees provided you do not make any changes.

User currently offline7E72004 From United States of America, joined Mar 2004, 3587 posts, RR: 2
Reply 8, posted (10 years 7 months 6 days 8 hours ago) and read 2758 times:

Just live with it people...if you expect better service...pay a little more...penny pintchers!  Big thumbs up


The next generation of aircraft is just around the corner!
User currently offlineTOLtommy From United States of America, joined Dec 2003, 3308 posts, RR: 5
Reply 9, posted (10 years 7 months 6 days 8 hours ago) and read 2750 times:

Gee, isn't CO hedged? Seems like an excuse to jack prices up on uninformed consumers....

User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 56
Reply 10, posted (10 years 7 months 6 days 8 hours ago) and read 2743 times:

CO is doing the right thing by putting this modest increase through, the fuel costs have become a big problem for the airlines and yeilds, in general, are still not what they should be. The modest increase will not add more than 10% to the fare, and in most cases a lot less.

The price of filling up your car has just about doubled in the past year or so, so a +/- 10% increase in air fares is to be expected. CO has been trying to get a fare increase through for several months but could not due to actions by other airlines.

Sometimes we forget that air travel must be realistically priced if airlines are to stay in business.


User currently offlineTpk From United States of America, joined Sep 2000, 188 posts, RR: 13
Reply 11, posted (10 years 7 months 6 days 8 hours ago) and read 2717 times:

Notice that this increase was put through in conjunction with statements about cutbacks that may need to occur if the airline is not able to get fares up.

http://biz.yahoo.com/rc/040518/airlines_continental_fares_1.html

Realistically I don't believe that even CO thinks the increase will actually stick, but to be responsible to its employees, it must try to take some action on the revenue side before going back to them for concessions and possibly staff reductions.

The problem with US domestic airline pricing is that it is that air travel is a commodity for the most part and if any one major airline decides not to take the fare increase across the board on all fares, it will inevitably fall apart. This is why you see these fare increase press releases on a near monthly basis. They help carriers to clarify their intent (i.e., that a specific carrier is "in" on the increase).




User currently offlineYbacpa From United States of America, joined Feb 2001, 1108 posts, RR: 1
Reply 12, posted (10 years 7 months 6 days 8 hours ago) and read 2709 times:

Gee, isn't CO hedged

Yes, CO and most other airlines have fuel hedges. However, the ability to obtain fuel hedges is directly tied to a company's financial health, and with the situation most of the airlines are in energy suppliers aren't inclined to take on very much exposure to them. Ironically this is somewhat of a chicken-and-egg situation, since not allowing airlines to hedge could also drive them into bankruptcy.



SkyTeam: The alliance for third rate airlines finally getting their act together!
User currently offlineArtsyman From United States of America, joined Feb 2001, 4745 posts, RR: 34
Reply 13, posted (10 years 7 months 6 days 6 hours ago) and read 2671 times:

Gee, isn't CO hedged
****

Sure, they are hedged, but they are still hedged at a high amount as fuel prices have not been reasonable for ages. Airlines gamble on fuel prices all the time purchasing large amounts or rights in advance, but usually only 60 months to a year in advance. Fuel has been high for long enough that getting fuel at a low rate is just not possible.

People seem to assume that hedging means that all of a sudden fuel is cut in half or something..., we are really talking little change these days.


User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 14, posted (10 years 7 months 6 days 4 hours ago) and read 2635 times:

I can just see the FA's collecting $5 from each person as they board...hehe..would make a good SNL skit.  Smile

User currently offlineTaca From Costa Rica, joined Feb 2013, 0 posts, RR: 0
Reply 15, posted (10 years 7 months 6 days 4 hours ago) and read 2611 times:

According with CNN, DL is going to do the same.

User currently offlineArtsyman From United States of America, joined Feb 2001, 4745 posts, RR: 34
Reply 16, posted (10 years 7 months 6 days 3 hours ago) and read 2596 times:

According with CNN, DL is going to do the same.
***

As are United, Northwest and by the looks of it, Southwest too. American says they are considering it.

J


User currently offlineAlpha 1 From , joined Dec 1969, posts, RR:
Reply 17, posted (10 years 7 months 5 days 19 hours ago) and read 2537 times:

Looks like this farehike is going to stick, which is fine by me. The carriers have to be able to at least offset the skyrocketing fuel prices a bit.

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