US airlines backtrack on fuel surcharge

Major US airlines have reversed a decision to charge passengers a fuel surcharge after budget carriers decided not to follow suit. Because of increased fuel costs – crude oil is currently trading at record levels – American Airlines, Continental, United, Northwest and Delta had planned to implement a $5 surcharge this week. But, according to the BBC News website, the carriers backtracked because their no-frills rivals decided they would not pass the extra costs on to their passengers. A Continental spokesman is quoted as saying: “We reversed the decision for competitive reasons.” The BBC reports that oil prices are likely to remain high for the foreseeable future, with the oil producers cartel Opec ready to cut capacity in April. Report by Tim Gillett, News From Abroad