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Continental Starts Fuel Surcharge

Thu Jan 20, 2000 2:23 am

HOUSTON (AP) -- Continental Airlines has begun adding a $10 surcharge for one-way flights and $20 for round trips in an
attempt to recoup spiraling fuel costs.

Officials for the carrier said Tuesday that the surcharge applies to domestic flights on Feb. 1 and afterward. Tickets purchased before Tuesday will not include the

The charge appears on the face of the ticket but is not included in the quoted fare, said Karla Villalon, spokeswoman for the Houston-based carrier.

``Our cost for aircraft fuel in the fourth quarter of 1999 rose 49.7 percent over 1998,'' Ms. Villalon said. The company spent $259 million on fuel in the last three
months of the year.

Increased fuel costs are a direct result of the highest oil prices in nearly a decade, spawned by production cutbacks by foreign oil powers.

Ms. Villalon said the airline acted independently of other carriers, who also are reporting reduced profits because of expensive fuel.



This is really strange. Continental isn't usually one to initiate something like this. You never see continental initiate a fare hike. These usually start with American or United, and then the other carriers follow.

You can be sure that NW will follow along. Will UA or AA be next?
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RE: Continental Starts Fuel Surcharge

Thu Jan 20, 2000 3:39 am

They probably will all do a surcharge or just raise the quoted fare price.

But its not just airlines. Greyhound fares will probably go up for those gas-hog busses and the gas pump is higher for your car if you want to drive the trip. Your winter heating bill will be higher because the power company has higher fuel costs to produce power, or the gas to heat your home. The transportation companies will raise prices for tractor trailers who deliver food to your store so the food will be higher priced, including the food they serve on airlines. Also don't forget FedEx and UPS increasing rates for their jet fleets and trucks as well.

Those oil producing countries don't realize how much control they have on our economy. It is one big spiral...
Bruce Leibowitz - Jackson, MS (KJAN) - Canon 50D/100-400L IS lens

For Bruce

Thu Jan 20, 2000 3:50 am

They actually realized how much control they have. Normally these sheiks are very dumb but now they have realized how much power they have. Excuse but im very angry about this.

thank you

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RE: Continental Starts Fuel Surcharge

Thu Jan 20, 2000 5:59 am

It's interesting that Continental did it this way (a fuel 'surcharge' vs a general airfare increase). If other airlines had done it, I'm sure it would've been just an increase in airfare, with the general reason being an 'increase in fuel costs'. I think it's a smart move by Continental, they can say they didn't raise airfares when they actually did. Hopefully the surcharge won't become permanent!
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American & United To Follow!

Thu Jan 20, 2000 11:27 pm

This was just on the news this morning. American Airlines & United Airlines will follow Continental's lead & include a $20 surcharge on domestic flights.

Is this it, will the rest now jump on the band-wagon?


P.S=Should not be surprised oil countries are doing this. They suffered from $9 oil prices, now they want that revenue back. They are smart to know they have a stranglehold on the U.S, but they also now that exploration will increase and that would depress prices if they keep up this, they also now other countries may want to "cheat (Venezuela) in order to get more revenue. Alternative fuel sources would also be developed, so it is not in their best interests to keep prices this high, & they know it. They are just testing the world to see how much of this they can take, until the world says "enough", then you will quickly see production increase again.
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Why A Surcharge

Fri Jan 21, 2000 1:54 am

Maybe the surcharge was put in effect opposed to a fare hike so people would know exactly why they were having to pay more, and perhaps even put a little pressure on the powers that be to get the price of fuel lowered.