US carriers raise fares to offset fuel costs
American Airlines has raised its US round-trip fares by $20, termed as the biggest in a series of hikes carriers have pushed through in recent weeks as oil prices have surged. (11/2/2007)
American said it raised ticket prices on flights within the continental US by $10 one-way in an attempt to recover some of the costs associated with the rising price of crude oil and jet fuel.
Delta Air Lines and Alaska Airlines followed with their own increases Thursday, according to data provided by airline price tracking Web site FareCompare.com.
The increase, led by AMR, follows others initiated and matched in recent weeks by carriers as the price of crude oil -- directly related to the price of jet fuel -- sets new records.
NYMEX crude notched an all-time high on Thursday above $96 a barrel before retreating.
"Just since August, average spot market crude oil prices have risen by nearly $14 a barrel," AMR said in a statement. "That increase translates into more than $1 billion of additional annual expense (for) American."
The latest round of fare hikes is the industry´s seventh since Labor Day, and the largest of those in dollar terms, said Rick Seaney, Chief Executive, FareCompare.com.