4 major airlines increase fares
By Marilyn Adams, USA TODAY
Travelers buying summer tickets may be in for sticker shock on airfares to Europe and within the USA.
6/23/2005
usatoday.com
The four biggest U.S. airlines — American, United, Delta and Northwest — raised most airfares Wednesday, citing record-high fuel prices. United raised fares 3% across the board, Northwest raised domestic fares 3%, and American and Delta raised fares $5 each way.
Continental did not raise fares.
The airfare increases come after a turbulent year in which big airlines have been plagued by higher fuel costs, underfunded pension obligations and fierce competition from discount carriers.
"With oil continuing to trade at historically high levels, all industries must act responsibly to offset rising costs," said United marketing chief John Tague. Although crude-oil prices fell 81 cents to $58.09 a barrel Wednesday, the futures contract flirted with $60 a barrel Monday, closing at a record $59.37.
Before Wednesday, domestic fares had risen seven times since February, especially on routes where major airlines face little competition from discount carriers. Meanwhile, fares to Europe are the highest that passengers have seen in years.
Demand on both sides of the Atlantic is up, especially from Europeans, whose currency, the euro, goes a long way in the USA. But the number of seats offered between the USA and major European gateways is up only 2% year over year, according to USA TODAY research. As a result, coach fares this summer are high, even booked a month ahead.
Travelers leaving on Saturday from any gateway city in the eastern USA will pay $1,000 to $2,000 round trip for coach flights to Paris, Rome, Amsterdam or Frankfurt, Germany.
Travelers to London will pay more than $1,000 round trip unless they fly from New York.
"The Atlantic is very strong this summer, and it's surprising people," said Graham Atkinson, United's senior vice president of worldwide sales. "It's difficult to get a seat in economy in peak weeks and on weekends."
Fueled by the euro, worth $1.21 on Wednesday, passenger demand in Europe is growing 5% faster than in the USA, Atkinson said. But the euro has weakened since January, when it hit $1.35. That may explain why some U.S. travelers have decided to vacation in Europe after all. "We have two groups fighting for seats," said Tom Parsons, CEO of Bestfares.com.
Trips within the USA are also costlier. A July flight on Delta from Dallas to Albany, N.Y., would have been $323 round trip if booked last fall. Today, it would be $456 round trip if booked 14 days ahead. Even discount carriers are raising fares. Southwest flights from Cleveland to Los Angeles had been as cheap as $99 one way. Now the best fare is $139, Parsons said.
Bargain fares to Europe in June, July and August are close to non-existent. London is the cheapest gateway because it has more flights than other capitals and two major airports. From there, travelers can take a train or a European low-fare carrier elsewhere. Flying Tuesdays and Wednesdays is cheaper than weekends.
If those tips don't work, Parsons advises, "sit back, prop your feet up and wait till September," when fares usually drop. |
