Aeroflot777 From Russia, joined Mar 2004, 3050 posts, RR: 25 Posted (10 years 11 months 4 days 8 hours ago) and read 3652 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.
757KSLC From United States of America, joined Oct 2003, 233 posts, RR: 0
Reply 3, posted (10 years 11 months 4 days 8 hours ago) and read 3525 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!
"That wasn't flying! That was falling with style!" Woody, Toy Story.
M404 From United States of America, joined Nov 2003, 2237 posts, RR: 4
Reply 6, posted (10 years 11 months 4 days 4 hours ago) and read 3017 times:
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