Saturday, April 30, 2005

American Airlines hikes fares

American Airlines has added another $5 each way to most of its North American fares, starting immediately. Now it's waiting to see whether rivals match the increase.

After years of attempts by various legacy carriers to raise fares, only to rescind them days later when competitors did not do the same and bookings fell, some recent increases have stuck.

The reason they stick is the reason they're attempted in the first place: all the airlines, even the discount carriers, are spending far more than last year because of soaring jet fuel prices. Crude oil still is trading above $50 a barrel, and American, the world's largest airline, has famously reported that each dollar rise costs it $80 million a year. .

Source: Pacific Business News (Honolulu)


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