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Fares will increase due to increase in fuel costs  
User currently offlineAeroflot777 From Austria, joined Mar 2004, 3478 posts, RR: 25
Posted (12 years 1 week 5 days 9 hours ago) and read 4250 times:

I was just watching the six o'clock news when they started talking about aircraft fuel costs. The newscast mentioned that four airlines: United, Continental, Northwest, and Delta, announced that their fares will increase due to the increase in fuel costs for the airlines. The fuel costs have increased 50% since last year, at least that's what they have reported. So anyway, have you guys noticed this fare increase?

Any comments will be appreciated.

P.S. American Airlines is still deciding weather or not to increase their fares in Europe.

[Edited 2004-05-21 06:37:26]

6 replies: All unread, jump to last
User currently offlineA330Fan1 From United States of America, joined Jul 2003, 856 posts, RR: 10
Reply 1, posted (12 years 1 week 5 days 9 hours ago) and read 4190 times:

hey Aeroflot777

I actually haven't noticed an increase in prices...uh oh

hopefully they won't go up too much  Sad thanks for the heads up


User currently offlineVS346 From United States of America, joined Mar 2004, 339 posts, RR: 1
Reply 2, posted (12 years 1 week 5 days 9 hours ago) and read 4150 times:

Heard it was going up $10 for domestic flights and $20 for intl flights.


Virgin-Atlantic: More experience than our name suggests
User currently offline757KSLC From United States of America, joined Oct 2003, 233 posts, RR: 0
Reply 3, posted (12 years 1 week 5 days 9 hours ago) and read 4123 times:

I flew into Florida airports twice last summer, and I am planning to do so again twice early this summer. I can tell you I am sure paying a lot more this year than I did last. I searched for the cheapest fares for weeks, last year I paid $320 for each round trip ticket, this year I'm forking out $520 for each round trip for the same airports, with similar dates as last years!

User currently offlineN754pr From , joined Dec 1969, posts, RR:
Reply 4, posted (12 years 1 week 5 days 9 hours ago) and read 4120 times:

Its already happened in the freight world, US$ 80+ for a 20' container and HK$ 1.60 per Kg for Air Freight.

User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 22
Reply 5, posted (12 years 1 week 5 days 6 hours ago) and read 3804 times:

UPS has been doing this since day one (Summer or Fall 2003) and is still doing it currently and I expect the airlines to do it into 2005.

[Edited 2004-05-21 08:49:10]

A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineM404 From United States of America, joined Nov 2003, 2258 posts, RR: 4
Reply 6, posted (12 years 1 week 5 days 5 hours ago) and read 3615 times:
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This actually would be the second fuel surcharge. As noted in the Aviation News section of A.net last week not all carriers have adopted this. Many only on routes they will compete with someone who has already raised the fare.

The reason it's not quickly adopted by all carriers despite the dire need for it is fuel price hedging. Many of the majors, like NW failed to hedge at all for 2004 but WN, an arch rival if only because it's an LCC, has a very large portion if it's fuel hedged at 2003 prices (for instance). If the legacy carrier or any other non-hedging company fears that the new higher price will give too much business to another more fully hedged carrier who can then more afford the price of fuel he may choose to just eat the higher fuel rate in order to maintain the all important (?) mantra of market share.

Less sarcasm and more thought equal better understanding
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