startknob
Posts: 148
Joined: Tue May 11, 2004 11:43 pm

CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 9:23 am

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.
 
doug_or
Posts: 3122
Joined: Sat Mar 18, 2000 9:55 am

.

Thu May 20, 2004 9:25 am

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
 
AIR757200
Posts: 1466
Joined: Mon Jul 17, 2000 8:30 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 9:44 am


costs rise, raise prices

Same thing happens with any other industry.
 
codc10
Posts: 1760
Joined: Sat Jul 08, 2000 7:18 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 9:49 am

Looks like a monthly thing. Continental's put out a fuel-driven fare increase around the 20th of each month since February.
 
artsyman
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 11:00 am

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
 
cba
Posts: 4228
Joined: Sat Jul 15, 2000 2:02 pm

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 11:46 am

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.
 
AirframeAS
Posts: 9811
Joined: Thu Feb 05, 2004 3:56 pm

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 4:25 pm

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.
 
ha763
Posts: 3168
Joined: Mon Jan 06, 2003 5:36 pm

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 4:48 pm

Tickets already paid for are not subject to any additional fees provided you do not make any changes.
 
7e72004
Posts: 3440
Joined: Thu Apr 01, 2004 12:15 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 9:56 pm

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!
 
toltommy
Posts: 2487
Joined: Tue Dec 09, 2003 9:04 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 9:59 pm

Gee, isn't CO hedged? Seems like an excuse to jack prices up on uninformed consumers....
 
dutchjet
Posts: 7714
Joined: Sat Oct 14, 2000 6:13 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 10:03 pm

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.
 
tpk
Posts: 188
Joined: Fri Sep 29, 2000 4:48 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 10:22 pm

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).


 
ybacpa
Posts: 1080
Joined: Thu Mar 01, 2001 5:39 am

RE: CO Now Charges Fees For High Fuel Prices

Thu May 20, 2004 10:24 pm

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!
 
artsyman
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: CO Now Charges Fees For High Fuel Prices

Fri May 21, 2004 12:29 am

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.
 
flyboyaz
Posts: 2077
Joined: Sat Sep 13, 2003 11:32 am

RE: CO Now Charges Fees For High Fuel Prices

Fri May 21, 2004 2:27 am

I can just see the FA's collecting $5 from each person as they board...hehe..would make a good SNL skit.  Smile
Catch a ride on a smile!
 
taca
Posts: 134
Joined: Mon Feb 11, 2013 7:50 pm

RE: CO Now Charges Fees For High Fuel Prices

Fri May 21, 2004 2:51 am

According with CNN, DL is going to do the same.
 
artsyman
Posts: 4516
Joined: Wed Feb 28, 2001 12:35 pm

RE: CO Now Charges Fees For High Fuel Prices

Fri May 21, 2004 3:01 am

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
 
Alpha 1
Posts: 12343
Joined: Sat Feb 03, 2001 12:12 am

RE: CO Now Charges Fees For High Fuel Prices

Fri May 21, 2004 11:50 am

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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