Last week, the major airlines failed in their attempt to raise airfares by
$20 roundtrip when Northwest refused to match the increase initiated by American
Airlines.
 On Wednesday, American again attempted to initiate an airfare increase
by raising their domestic fuel surcharge by $20 on routes not served by a
low-cost carrier. Like last week, the increase was quickly matched by a number
of other airlines including Continental, United and Midwest. Today, the fuel
surcharge hike was also matched by Delta, US Airways and Northwest making this
the 14th successful airfare increase since December 20, 2007.
Travelers flying between two non-competitive markets over 1,500 air
miles now pay $360 roundtrip more than they did on December 20,
20007. It should be noted that the airfare increase affects routes where the six major airlines do not compete with
a low- cost airline such as Southwest, Air Tran, Virgin America, JetBlue, Spirit or
Frontier.
"As the price of oil nears the $140 per barrel mark, we don't believe
this will be the last airfare hike in the near future" - states Tom
Parsons, CEO and founder of Bestfares.com.
"The major airlines continue to raise airfares and add new fees and
surcharges, doing anything they can for their own survival. Even with these fare
increases and added fees, airlines will likely still lose billions of dollars in
2008" - adds Parsons.
Listed below are the 19 attempts at airfare hikes and fuel surcharge
increases that have taken place in the past five months. Fourteen of these attempts
were successful:
(1) Week of December 20, 2007: Major airlines raise fuel surcharges on
leisure and Business Class fares from $10 roundtrip to $20 roundtrip. Total
increase since December 18, 2007, $10 roundtrip.
(2) Week of January 7, 2008: Major airlines raise leisure and Business Class
airfares by $10 roundtrip. Fuel surcharges still remain at $20 roundtrip. Total
increase since December 18, 2007, $20 roundtrip.
(3) Weekend of January 11, 2008: United Airlines attempts to raise domestic
airfares by adding a $30 roundtrip fuel surcharge to domestic airline tickets.
Delta, American, Continental, US Airways and Northwest Airlines match. However,
on January 14, 2008, Northwest rolled back their $30 fuel surcharge hike forcing
the other major airlines, including United, to roll back their fuel surcharge
increase. In other words, this attempt to raise airfares
(by adding a $30 fuel surcharge) was a bust.
(4) Weekend of January 17, 2008: American Airlines attempts to raise domestic
airfares by adding a $20 roundtrip fuel surcharge. Delta, United and Continental
quickly match. Northwest Airlines and US Airways decline to match, forcing the
other carriers to roll back their fuel surcharge. This
attempted airfare fuel surcharge hike is a bust.
(5) Weekend of January 24, 2008: Major airlines double fuel surcharges on
leisure and Business Class airfares from $20 to $40 roundtrip. Total increase
since December 18, 2007, $40 roundtrip.
(6) Weekend of February 22, 2008: Major airlines raise airfares on both
leisure and Business Class airfares $10 roundtrip. $40 fuel surcharge still in
place. Total increase since December 18, 2007, $50 roundtrip.
(7) Weekend of February 29, 2008: Major airlines raise leisure and Business
Class airfares $10 roundtrip. Total increase since December 18, 2007, $60
roundtrip.
(8) Weekend of March 7, 2008: Major airlines raise fuel surcharges from $40
to $50 roundtrip. Total airfare increase with airfare hikes and fuel surcharges
since December 18, 2007, $70 roundtrip.
(9) March 14, 2008: United & Continental Airlines raised both leisure and
business domestic airfares by $10 roundtrip on flights up to 500 air miles, $20
on flights 501 to 1000 air miles, $30 on flights 1001 to 1500 air miles, and a
whopping $50 roundtrip on domestic flights over 1,500 air miles one-way. On
March 15, 2008 American Airlines, Delta Airlines and US Airways matched the new
fare hike. March 16, 2008 Northwest, the final hold out of the legacy airlines,
matched United Airlines airfare increases. Total increase now as much as $120
roundtrip.
(10) Weekend of March 21, 2008: Delta Airlines raises fuel surcharges by $10
roundtrip. United Airlines was the only major airline to match the new increase.
Delta Airlines and United Airlines were both forced to roll back the fuel
surcharge increase. This attempted airfare fuel surcharge
increase is a bust.
(11) March 27, 2008: Delta airlines raises domestic leisure airfares by
adding a $10 fuel surcharge to most domestic airfares. This
increase is also a bust when other carriers fail to match.
(12) April 10, 2008: United Airlines raises domestic airfares $10 - $30 in
markets where they are not competing with low-cost carriers. All of the legacy
carriers match and this one sticks. Total airfare increase now as much as $150.
(13) April 16, 2008: United Airlines raises domestic fuel surcharges by $10
to $20 roundtrip. At 8:00 a.m. CDT on Thursday, April 17, Continental and Delta
Airlines match. American Airlines matched two hours after Continental and Delta,
followed by Northwest Airlines later that day, and finally US Airways goes along
that evening. (14) April 24, 2008: United Airlines raises domestic
airfares on most routes by three to five percent. American, Delta and
Continental match the increase early the next day; Northwest and US Airways
match another 24 hours later.
(15) April 29, 2008: Delta Air Lines raises domestic fuel surcharges by $40
roundtrip. American and United Airlines quickly matched the increase.
Continental matched a day later. Northwest and US Airways match another 24 hours
later.
(16) May 8, 2008: Delta Air Lines raises domestic fuel surcharges on both
short-haul and long-haul flights by $20
roundtrip. American and United Airlines quickly match the increase. Continental,
Northwest and US Airways match the increase the following day.
(17) May 23, 2008: United Airlines raises domestic airfares $20 - $60
roundtrip in
markets where they are not competing with low-cost carriers. American and Delta
quickly match the increase. Continental and US Airways match the increase the
following day and Northwest Airlines matching on Sunday May 25, 2008.
(18) June 6, 2008: American Airlines raises domestic airfares $20 roundtrip
in markets where they are not competing with low-cost carriers. Continental,
Delta, US Airways and United match the increase the next day. All five airlines
rollback the increase when Northwest refuses to match. This
attempted airfare increase is a bust.
(19) June 11, 2008: American Airlines raises domestic fuel surcharges by $20
roundtrip in markets where they are not competing with low-cost carriers.
Continental and United quickly match the increase. Delta, US Airways and
Northwest match the next day.
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