American Air increasing fuel surcharge

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American Air increasing fuel surcharge




Thursday January 15, 6:40 PM EST

(Adds plans of other carriers, details)

DALLAS, Jan 15 (Reuters) - American Airlines said on Thursday it will increase its fuel surcharge by $3 for one-way travel within North America, even though the world's largest airline dropped a similar fuel increase a few weeks ago.

The fuel surcharge is effective immediately, the AMR Corp. (AMR) division said. With the increase, the fuel surcharge totals $13 for one-way travel in the United States and Canada and $26 for round trips, it said.

In December, American tried to implement an increase on the fuel surcharge but abandoned the plan when other carriers did not follow suit by raising their fuel surcharges.

"Since that time, however, fuel prices have continued to escalate, leading to American's decision to reimpose this modest increase in its fuel surcharge," American said in a statement.



American said the average spot price for a gallon of jet fuel has increased by 16 cents over the past two months and each 1 cent increase in the jet-fuel price translates into an additional $30 million in costs per year for the airline.

Among the major airlines available for comment, US Airways Group (UAIR) said the carrier does not plan to increase ticket prices.

Northwest Airlines (NWAC) said the carrier has not matched the increase. Continental Airlines (CAL) said they have not matched the increase but are studying the situation.

United Airlines (UALAQ), America West (AWA) said they were studying the situation. JetBlue Airways Corp. (JBLU) and Southwest Airlines (LUV) do not have a fuel surcharge.


Roger
EWROPS

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