Airlines increase surcharges on fuel

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BLOOMBERG NEWS

AMR Corp.'s American Airlines, UAL Corp.'s United Airlines and Delta Air Lines Inc. all increased fuel surcharges by $20 per round trip, bringing the total on most routes to $130.

It's the 15th attempt by major U.S. carriers to boost fares or surcharges this year, Rick Seaney of ticket research firm FareCompare.com said in an e-mailed statement yesterday.

The new surcharge, together with taxes and fees, is now larger than the base airfare on some short domestic flights, Mr. Seaney said.

Delta Chief Executive Officer Richard Anderson has said U.S. airlines must raise fares by 15 percent to 20 percent just to break even at current fuel prices.

"Fares have to reflect the price of doing business, and fuel is our single highest cost," Delta spokeswoman Betsy Talton said. The Atlanta-based carrier initiated the increase late Wednesday, and others matched yesterday, according to FareCompare.com.

Mr. Seaney reported earlier that Continental Airlines Inc. also raised surcharges on certain routes. Continental spokeswoman Julie King said the company hasn't matched the increase by the others.

AMR spokesman Tim Smith confirmed that the Fort Worth, Texas-based carrier increased its fuel surcharges by $20 per round trip, and UAL spokeswoman Robin Urbanski said the Chicago-based company followed at noon yesterday. Northwest Airlines Corp. hasn't matched the increase, spokeswoman Michelle Aguayo-Shannon said.

Jet fuel has surged 80 percent in the past year, and surpassed labor as the biggest cost for most carriers. Delta President Ed Bastian said earlier this week that the carrier's fuel costs have risen to 43 cents for every dollar of revenue, from 17 cents five years ago.

Delta last month agreed to buy Northwest to create the world's largest carrier, surpassing American Airlines.