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United States
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Dropping fuel surchages
US airlines may have to re-think their latest efforts way to counter record high jet fuel prices by raising fares.
American Airlines became the latest to announce increased fares by $5 each way for most trips in North America, but the company soon rescinded the higher fares.
American’s move marked the ninth time this year that airlines have tried and failed to push through higher fares.
“We retained it in some small markets” where local competitors instituted the higher fares, said American spokeswoman Jacquie Young. “We still think the fare increase was warranted” because of rising jet fuel prices, she told the Fort Worth Star-Telegram.
Fuel accounts for about 14% of average airline expenses. American said it expects to spend about $1 billion more for fuel in 2004 than it did in 2003.
Report by David Wilkening
David
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