On the evening of March 13, 2008, United Airlines raised
both their leisure and business airfares by $10 roundtrip on flights up to 500 air miles, $20 on flights 501 to 1000 air miles, $30 on flights 1001 to 1500 air miles, and a whopping $50 roundtrip on domestic flights over 1,500 air miles one-way.
 Continental Airlines matched this increase today. "If this airfare hike sticks, it will be up to 250% higher than any other fuel surcharge or airfare increase we have seen since December 18, 2007," says Tom Parsons, CEO and Founder of Bestfares.com, an interline website that tracks airfare changes and travel industry trends. "We have seen United raise airfares
once this year for $30 roundtrip, but that attempt was rolled back," adds
Parsons.
It should also be noted that since December 18, 2007, the major airlines had
already successfully raised both leisure and business
airfares by $70 roundtrip by either
raising airfares or fuel surcharges. If this increase is matched by
American, Delta, Northwest and US Airways, travelers flying over 1,500 airmiles
on non-competitive routes will be paying as much as $120 roundtrip more on the
same routes in less than three short months. Listed below are the airfare hikes
and fuel surcharge increases the major airlines have made since December 18,
2007.
(1) Week of
December 20, 2007: Major airlines raise fuel surcharges on leisure and
Business Class fares from $10 roundtrip to $20 roundtrip. Total increase
since December 18, 2007, $10 roundtrip.
(2) Week
of January 7, 2008: Major airlines raise leisure and Business Class
airfares by $10 roundtrip. Fuel surcharges still remain at $20 roundtrip.
Total increase since December 18, 2007, $20 roundtrip.
(3)
Weekend of January 24, 2008: Major airlines double fuel surcharges on
leisure and Business Class airfares from $20 to $40 roundtrip. Total
increase since December 18, 2007, $40 roundtrip.
(4)
Weekend of February 22, 2008: Major airlines raise airfares on both
leisure and Business Class airfares $10 roundtrip. $40 fuel surcharge
still in place. Total increase since December 18, 2007, $50 roundtrip.
(5) Weekend
of February 29, 2008: Major airlines raise leisure and Business Class
airfares $10 roundtrip. Total increase since December 18, 2007, $60
roundtrip.
(6) Weekend
of March 7, 2008: Major airlines raise fuel surcharges from $40 to $50
roundtrip. Total airfare increase with airfare hikes and fuel surcharges
since December 18, 2007, $70 roundtrip.
Please
note that this hike might not stick unless matched by AA, Delta,
Northwest and U.S. Airways.
(7) March 14,
2008: United & Continental Airlines raise airfares by $30 - $50 roundtrip.
Total airfare increase with airfare hikes and fuel surcharges since December 18,
2007, $100 for flights up to 1500 miles, $120 for flights over 1500
miles.
"Now that the price of crude
oil has gone as high as $111 per barrel this week, we do expect the airlines to
pass this higher fuel cost on to the traveling public," states Parsons.
"If there is any fact here, air travelers will be paying much more than
they did last summer, especially in markets where the legacy airlines do not
have to compete with low-cost carriers such as Southwest Airlines, JetBlue,
Spirit, Virgin America and Frontier."
As fuel prices continue to rise,
non-competitive markets will continue to take the brunt of future airfare
and fuel surcharge hikes. The biggest opportunities for low-cost
travel are to those travelers who have the option of flying on
low cost carriers, or on those routes where the legacy carriers have to match
those fares to remain competitive. Those travelers still have the
"Freedom To Fly" for less, for example, coast to coast for as little
as $198 roundtrip.
"For those who are planning
travel for the upcoming busy summer travel season, the airlines are going to
have to keep addressing the reality of higher and higher fuel prices and
the general public is going to have to face the fact that they are going to
have to spend more if they want to continue to travel by air. If you
thought you'd be able to travel this year for less than, or even the same price,
as last year, well you better get rid of those thoughts because they're not
based in reality," adds Parsons.
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