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Aeroflot777
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Posts: 2995
Joined: Mon Mar 22, 2004 2:19 pm

Fares will increase due to increase in fuel costs

Fri May 21, 2004 1:27 pm

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.
Aeroflot777

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

[Edited 2004-05-21 06:37:26]
 
A330Fan1
Posts: 835
Joined: Wed Jul 16, 2003 2:24 pm

Fares will increase due to increase in fuel costs

Fri May 21, 2004 1:31 pm

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

-A330Fan1
 
VS346
Posts: 332
Joined: Wed Mar 10, 2004 12:58 pm

Fares will increase due to increase in fuel costs

Fri May 21, 2004 1:35 pm

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

VS346
Virgin-Atlantic: More experience than our name suggests
 
757KSLC
Posts: 221
Joined: Tue Oct 07, 2003 10:52 am

Fares will increase due to increase in fuel costs

Fri May 21, 2004 1:40 pm

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!
 
N754PR
Posts: 2909
Joined: Mon Oct 04, 1999 10:03 pm

Fares will increase due to increase in fuel costs

Fri May 21, 2004 1:40 pm

Its already happened in the freight world, US$ 80+ for a 20' container and HK$ 1.60 per Kg for Air Freight.
Bush, your a sad, sad man.
 
AirframeAS
Posts: 9811
Joined: Thu Feb 05, 2004 3:56 pm

Fares will increase due to increase in fuel costs

Fri May 21, 2004 3:48 pm

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.
 
m404
Posts: 1875
Joined: Tue Nov 25, 2003 4:43 pm

Fares will increase due to increase in fuel costs

Fri May 21, 2004 5:05 pm

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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