Airlines To Raise Fares Again
Major U.S. airlines want to raise fares by $10 per round trip blaming the cost of jet fuel.
This would be the fourth time in a month fares were raised. Some prices have gone up as much as $60 over the past five weeks.
A Seattle Times article says:
“In the past, most fare increases have been repealed within days when one or more airlines didn’t participate. Because the industry is so highly competitive, fare prices typically don’t rise unless all airlines increase them at the same time.
But that was before oil prices rose above $55 per barrel. Because jet fuel is one of the biggest expenses for airlines, the high fuel prices have cost the large carriers billions of dollars.”
Analysts are forecasting big losses for airlines this year similar to last year when carriers spent nearly $6 billion more for fuel than the previous year.
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