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Air Canada Raising Fares Due To Fuel Costs

Fri May 21, 2004 9:07 am

Air Canada raises fares to reflect rising fuel costs

MONTREAL (CP) — Air Canada is raising fares for all of its flights due to escalating fuel prices, the financially struggling airline announced late Thursday.

The airline said the increases apply to all fare types on Air Canada, its Jazz regional operation and the Zip discount carrier.

Flights within Canada of up to 799 miles — about 1,300 kilometres — will rise $7 each way and fares for longer domestic trips will increase $10 per flight.

Fares on travel to and from the United States are being increased each way by $14 on flights up to 1,000 miles, or 1,600 kilometres, and by $28 on longer flights.

Fares to and from international destinations rise by $6 each way.

The increases take effect immediately for travel to and from the United States, and May 28 on domestic and international flights.

Air Canada (TSX: AC) said fuel is the second-largest operating expense for airlines after labour — 14 per cent of its operating costs in 2003 and almost 15 per cent in the first quarter of this year.

I'd assume that a similar announcement will be made by Westjet and Jetsgo soon.

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