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Delta, American, United Raise Airfares

By ADAM SCHRECK,

Posted: 2008-05-08 18:11:56

NEW YORK (May 8) - The three biggest U.S. carriers said Thursday they have again raised ticket prices, this time by $20 round trip, to recoup rapidly rising fuel costs.

The increases by American Airlines, United Airlines and Delta Air Lines affect the carriers' fuel surcharges, which now total $130 roundtrip on many flights. That means passengers on some cheap flights could be paying more in fees and taxes than for the airfare itself.

Delta Air Lines Inc. initiated the increase, which applies to most domestic routes. It is the Atlanta-based carrier's second hike in just over a week. The previous increase was quickly matched by competitors.

"This is obviously a result of the current market, and fares have to reflect the cost of doing business," spokeswoman Betsy Talton said.

Representatives for AMR Corp.'s American Airlines and UAL Corp.'s United Airlines said the carriers matched the increase on most routes Thursday.

Airlines have been racing to raise airfares, tack on surcharges, and charge for amenities such as extra bags and legroom as they struggle to cope with soaring energy prices. Many airlines now count fuel as their biggest cost.

The price of jet fuel, like gasoline, has risen rapidly along with the price of crude. A gallon on the spot market in New York was selling for $3.57 as recently as Tuesday, according to the Energy Information Administration. That is up about 78 percent from this time last year.

At the same time, carriers are cutting back on flights to reduce costs and maintain their pricing power as the economy slows. Even so, analysts expect many large carriers to post large losses this year.

"I would say to my CEOs: fasten your seat belts, tougher times are coming," Giovanni Bisignani, director general and chief executive of the International Air Transport Association trade group, said in an interview.

Rick Seaney, chief executive of airfare research site FareCompare.com, said the increases mean that fees and taxes together now cost more than the actual base fare on several short-haul flights.

"With a backdrop of a slowing economy, I continue to look for a tipping point where domestic air travelers begin to significantly push back on record high airline ticket prices. At best the jury is still out," Seaney said in an e-mail.

Delta shares rose 5 cents to $7.72 in afternoon trading. AMR shares rose 2 cents to $8.59, while UAL shares were flat at $13.82.

Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.

2008-05-08 14:44:04

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126 comments

AMM7543 04:33:20 PM May 13 2008

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After giving it some thought, I think that if GASOLINE BECOMES A TAX DEDUCTION FOR EVERYONE off the federal taxes, we, the consumers will finally get WASHINGTON to hear us. It wont be so easy for the goverment to let this happen if IT COMES OUT OF THEIR POCKET TOO!
Keep your gas receipts and if you have a job 30 hrs a week or more, which to have to travel to and from, IT IS A BUSINESS EXPENSE! Not many people go to work for a pleasure trip, now do we? AND FOR THE STAY AT HOME MOM....YEP< YOUR WORKIN" FULL TIME TOO!! Get on the fax machine, cell phones, e mails and the good ole fashion telephone and PUSH that SENATOR WHO YOU PAY to tell the FEDS its gonna be a tax deduction for WORKING FOLKS! If you work for some big ass oil company, it is...why not yours!
Think about it............Hit the govement in the wallet, they will pay on our team.

Scottilla 01:55:56 PM May 09 2008

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AgapeHar 10:38:30 PM May 08 2008

Report This! The fact of the matter is that $4 gas is comparable to .80 when I was a teenager. Minimum wage then was $1.25, which makes it a higher percentage than today's $7.50.

I don't know, when I was a teenager, the minimum wage was $2.10 and gas was a quarter. We must have crossed in the mail.

Scottilla 01:49:14 PM May 09 2008

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ASEber1 09:33:58 AM May 09 2008

Report This! If the price of oil is too high, just stop using it. If it's not, party on!

At last. A sensible voice in the crowd!

MADDOC31 10:54:16 AM May 09 2008

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COME ON AMERICANS, LETS DO SOMETHING ABOUT THIS. WE ARE BEING VERY FOOLISH BY PURCHASING GAS AT THESE PRICES. WE NEED TO ALL STICK TOGETHER ON THIS ONE. E-MAIL EVERYONE YOU KNOW AND TELL THEM TO BOYCOTT THE MAJOR GAS STATIONS.....EXXON, MOBILE, SHELL, AND GETTY. YOU CAN STILL GET GAS, JUST DON'T DO IT FROM THOSE STATIONS. THEY WILL BE FORCED TO LOWER PRICES WHEN THEY START FEELING THE CRUNCH. DO IT OR DON'T COMPLAIN WHEN THE GAS PRICES REACH 5 BUCKS A GALLON BY SUMMERS END.

ASEber1 09:33:58 AM May 09 2008

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If the price of oil is too high, just stop using it. If it's not, party on!

Gdw7745 06:45:32 AM May 09 2008

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oil co. charge what ever they want so why cant all the other co. do the same. just stick it to the people thats the motto it seems!!!!!!!!!!!!!

EverAfter7 05:12:40 AM May 09 2008

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It's about time the airlines raised their prices. They are NOT in business for charity. Maybe some higher prices will change airlines from being the "Greyhound buslines" of the sky and make flying somewhat respectable again. What makes people think that flying should be cheap anyway? It's a very dangerous thing to fly a plane across the country and takes a lot of coordination from many people who should be compensated accordingly for safe flights.

ChapHook 05:12:30 AM May 09 2008

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Many in the US have lived well beyond their means for at least a decade. We have borrowed from other countries and robbed our home equity to buy McMansions, gigantic SUVs and such. With the growth of the global economy, we now compete for the resources required to support this lifestyle. Simply put, it now costs more to do so. It's neither the fault of either the US government nor the oil-producing countries that this has occurred. Get used to it! Cheap energy is gone for good.

Bob, Dexter, MI

BlueVegas451 05:09:42 AM May 09 2008

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NOTHING IS LIKE IT USED TO BE. THE SYSTEM IS SUPOSED TO LAST UP
TO 2012 (SOME PREDICTIONS SAID).
BUSH IS TOO BUSY TRYING TO LEARN HOW TO DANCE AT HIS DAUGHER'S
WEDDING. WAKE UP AMERICA AND SMELL THE ARABS....
A CONCERNED CITIZEN.

BlueVegas451 05:01:22 AM May 09 2008

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BUSH IS TO BUSY PLANNING HIS DAUGHTER WEDDING AND TRYING
TO LEARN WHOW TO DANCE. WAKE UP AMERICA AND SMELL
THE ARABS....

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126 comments