Fourth US air fares increase in a month

Airline Industry Information, April 4, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Major US airlines have raised fares for the fourth time in a month.

The price increase, USD10 for a roundtrip, includes many domestic routes as well as services to Alaska and Hawaii. The airlines are citing rising fuel costs for the increase, according to The Associated Press.

The increases were reportedly introduced first by Delta Air Lines and United Airlines, with USD10 for a roundtrip added on 31 March. Representatives of US Airways, Northwest Airlines, American Airlines and America West Airlines said that they also raised fares on 1 April.

Although the airlines have raised fares three times before in the past month, they have reportedly avoided increasing the cost on routes with direct competition with budget airlines such as Southwest Airlines and JetBlue Airways.

According to Reuters, oil prices went up to a record of nearly USD58 a barrel on 1 April. The increase was fuelled by a forecast from Goldman Sachs, stating that prices could spike above USD100 a barrel due to persistent demand globally and tight spare capacity.

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