Posted by

David Koenig (AP) David Koenig (AP)
This e-mail address is being protected from spambots. You need JavaScript enabled to view it


Airlines cite fuel costs as they raise fares

Rate this item
(0 votes)
DALLAS - If you're buying an airline ticket soon, get ready to pay a few bucks more.

According to fare trackers, JetBlue Airways and Southwest Airlines are leading a round of price increases that will boost the base fare on many medium-length and long flights by $10 per round trip.

United, Delta, American and US Airways said Thursday that they had matched the increases.

J.P. Morgan analyst Jamie Baker, who tracks fares, said United and US Airways expanded the price increases to routes that Southwest doesn't fly and included Denver, where Southwest had not raised prices. Rick Seaney, CEO of, said at midday Thursday that all the largest U.S. airlines had raised fares.

Baker and Seaney said JetBlue took price increases that other airlines limited to a few markets such as Florida and expanded them nationwide last week. Southwest jumped in on Wednesday, they said.

JetBlue spokeswoman Alison Croyle said the airline raised prices by $5 each way on some Florida and West Coast routes last week and expanded the increase to other routes Sunday. Southwest spokeswoman Ashley Dillon said her airline raised prices to match JetBlue and 'cover operating costs including the high price of jet fuel.'

Jet fuel accounts for about one-third of an airline's costs - about the same as labor - and the bill has been rising along with crude oil prices. This week, the spot price for Gulf Coast jet fuel was 12.1 percent higher than a year ago and up 8.5 percent so far in 2012, according to the U.S. Energy Information Administration. That could mean more fare hikes ahead.

'It is pretty clear airlines will continue to try to recoup fuel increases regularly this year, with passengers telling carriers exactly when the price of middle seats has stepped over the line,' said Seaney.

Airlines raised base fares about a dozen times in 2011. But at the same time, they sacrificed revenue by simultaneously running sales to fill seats during slower travel periods or in specific markets. This week, even as it raised base fares, American launched a sale on Miami flights. Many consumers are savvy enough to wait for sales before buying tickets.

As a result of this yo-yo pricing, average fares don't rise as fast as the number of increases would suggest. The average fare on Southwest, one of the few airlines that discloses such figures, was $140 in late 2011, up 7 percent from a year earlier.

Southwest carries more U.S. passengers than any airline and heavily influences prices that competitors charge on many routes.

In some cases, including several times late last year, other airlines attempted to raise prices but gave up when Southwest refused to go along. Airlines are reluctant to set prices higher than competitors, because many consumers will switch carriers to save just a few dollars.

At times Southwest has hinted that in a weak economy, price increases might drive away customers. But chief financial officer Laura Wright told investors two weeks ago that demand was holding up despite many recent fare increases, including eight last year.

Traffic on some airlines, including industry leader United, fell in January compared with the same month last year. Others, including American, saw more traffic.

Thanks to fare increases, all the major airlines that reported figures said they earned more revenue for every seat flown one mile. That's a closely watched measure of pricing power in the airline business.


  • Comment Link Rosario Tuesday, 06 February 2018 02:14 posted by Rosario

    America's Favourite Debris Removal Company.

  • Comment Link Deb Monday, 05 February 2018 22:02 posted by Deb

    Hi there, after reading this awesome post i am as well glad to share my know-how here with mates.

  • Comment Link Pearline Wednesday, 10 January 2018 01:38 posted by Pearline

    Excellent blog here! Also your web site loads
    up very fast! What host are you using? Can I get your affiliate link to your host?
    I wish my website loaded up as quickly as yours lol

  • Comment Link Enriqueta Saturday, 06 January 2018 15:21 posted by Enriqueta

    If you would like to get a great deal from this piece of writing then you
    have to apply these techniques to your won blog.

  • Comment Link Donnell Wednesday, 06 December 2017 03:05 posted by Donnell

    I will right away grasp your rss as I can't to find your email subscription link
    or newsletter service. Do you've any? Kindly allow me understand so that I may just subscribe.

  • Comment Link Trisha Wednesday, 06 December 2017 01:37 posted by Trisha

    Pretty element of content. I just stumbled upon your website and in accession capital to assert that I acquire
    in fact loved account your weblog posts. Any way I'll be
    subscribing to your augment and even I success you get entry to consistently quickly.

  • Comment Link Bret Sunday, 26 November 2017 03:18 posted by Bret

    I absolutely love your blog and find the majority of
    your post's to be what precisely I'm looking for.
    Do you offer guest writers to write content for you? I wouldn't mind creating a post or elaborating on a lot
    of the subjects you write in relation to here.

    Again, awesome web log!

  • Comment Link Elmer Tuesday, 21 November 2017 19:53 posted by Elmer

    When I initially commented I seem to have clicked on the -Notify me when new comments are added-
    checkbox and from now on every time a comment is added I receive
    4 emails with the same comment. Is there a way you can remove me from that
    service? Kudos!

  • Comment Link Clint Monday, 13 November 2017 15:49 posted by Clint

    Head of state and Boss Performing Officer, Cummins

  • Comment Link Russel Friday, 10 November 2017 22:21 posted by Russel

    I used to be able to find good advice from your blog articles.

<< Start < Prev 1 2 Next > End >>

Leave a comment

Make sure you enter the (*) required information where indicated.
Basic HTML code is allowed.


Website CMS and Development by Links Online Marketing, LLC, Bangor Maine