Airlines announce fare hikes
Unable to cope with fuel prices, Airlines are
now raising ticket fares
|
|
BY TOMICHEN
13th August,2005: American Airlines,
Northwest Airlines and JetBlue Airways have
raised ticket fares in various markets, a press
release said. They hope to recoup some of their
increased costs from record fuel prices.
The move follows recent ticket hikes by the rivals
rivals including Delta Air Lines, United Airlines
and Continental Airlines. All of them had raised
their ticket fares since Wednesday.
Most carriers said they raised the prices to help
mitigate the impact of increasing fuel prices.
Crude oil prices have reached a whooping $66 a
barrel.
"It had to happen," said Terry Trippler, airline
expert at Cheapseats.com. "The price of crude oil
is out of line obviously. Unfortunately the (fare)
increases are not enough to cover what has
occurred, and we can expect more increase as early
as next week."
Rise in oil prices, together with tight
competition in the low budget market has made it
difficult for the airlines to operate. So they
have decided to share the burden with customers.
U.S. Airline American hiked fares on a range of
domestic routes with increases ranging from $5 to
$10 each way , spokesman Tim Smith said Friday.
American airlines raised its fares on Thursday.
Northwest said it matched its rivals fare hikes on
Friday and has broadened its fare hikes to match
price caps of $599 and $699 by a key rival on some
routes.
Spokeswoman Jenny Dervin said that the Discount
carrier JetBlue has raised fares by $5 on flights
to and from Florida and on some transcontinental
flights. The new fares will take effect on
Thursday.
Flight analysts feel that the current rise in oil
prices is enough to make some airlines bankrupt.
The higher ticket prices did little to help the
beleaguered industry's shares, as oil prices raced
to record highs above $66 a barrel on Friday.
BY TOMICHEN |
|
|
