All Six Major Airlines Successfully Raise Airfares For The 10th Time In Four Months

This is the tenth airfare hike we have seen from the major airlines since December 20, 2007, and the ninth increase in 2008. Today, the average fuel surcharge, which has been raised four times since December 20, is $70 roundtrip. This fuel surcharge applies to both short haul and long haul flights. The major airlines have also raised leisure airlines six times since January 7.

Of the recent airfare hikes, the first five were by flat dollar amounts, such as $10 or $20 roundtrip. On March 14, United threw in a new twist by raising some airfares by 3%, but the majority of increases were by 5% on the base airfare.

In just four short months, leisure travelers purchasing roundtrip tickets, especially on flights over 1,500 air miles one way, could be paying as much as $220 roundtrip more than they did between the same two destinations back in December. One example is Newark to Fresno (CA), a cross-country route not served by a low-cost carrier. On December 20, 2007, the lowest published leisure airfare on this route on Continental was $760 roundtrip. Today, United charges $973 roundtrip for this route, an increase of $213 roundtrip.

Another example is Savannah (GA) to Portland (OR). On December 18, 2007, the lowest published airfare was $650 roundtrip on Delta. Today, the lowest published airfare on this route is $878 roundtrip, an increase of $228 roundtrip.

One of the highest airfares in America based on cost-per-mile is San Francisco to Sacramento, which is a distance of 86 air miles each way or 172 air miles roundtrip. The lowest leisure airfare on both United and US Airways for this route is a whopping $686 roundtrip. That's $3.98 per mile. The walk-up fare (Y class) on this route is $1,510 roundtrip, or a $8.77 cost per mile flown.

One of the lowest airfares in America on a cost-per-mile basis is also from San Francisco. San Francisco to Las Vegas, where United and US Airways must compete with low-cost carriers Virgin America and Southwest Airlines, is a distance of 830 air miles roundtrip. On this route, all four airlines offer a roundtrip leisure airfare of $88 roundtrip, or a cost per mile of 10.6 cents per mile. Southwest's walk-up fare (Y class) is $153 one-way or $306 roundtrip, or 36.9 cents per mile.

As major airlines continue to lose billions of dollars and as the cost of fuel continues to climb, leisure and business travelers should expect to see even more airfare hikes in the very near future, especially on non-competitive routes.

Updated April 29, 2008 - Listed below are the 15 attempts at airfare hikes and fuel surcharge increases that have taken place in the past four months. Ten of these attempts were successful:

(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 11, 2008: United Airlines attempts to raise domestic airfares by adding a $30 roundtrip fuel surcharge to domestic airline tickets. Delta, American, Continental, US Airways and Northwest Airlines match. However, on January 14, 2008, Northwest rolled back their $30 fuel surcharge hike forcing the other major airlines, including United, to roll back their fuel surcharge increase. In other words, this attempt to raise airfares (by adding a $30 fuel surcharge) was a bust.

(4) Weekend of January 17, 2008: American Airlines attempts to raise domestic airfares by adding a $20 roundtrip fuel surcharge. Delta, United and Continental quickly match. Northwest Airlines and US Airways decline to match, forcing the other carriers to roll back their fuel surcharge. This attempted airfare fuel surcharge hike is a bust.

(5) 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.

(6) 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.

(7) Weekend of February 29, 2008: Major airlines raise leisure and Business Class airfares $10 roundtrip. Total increase since December 18, 2007, $60 roundtrip.

(8) 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.

(9) March 14, 2008: United & Continental Airlines raised both leisure and business domestic 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. On March 15, 2008 American Airlines, Delta Airlines and US Airways matched the new fare hike. March 16, 2008 Northwest, the final hold out of the legacy airlines, matched United Airlines airfare increases. Total increase now as much as $120 roundtrip.

(10) Weekend of March 21, 2008: Delta Airlines raises fuel surcharges by $10 roundtrip. United Airlines was the only major airline to match the new increase. Delta Airlines and United Airlines were both forced to roll back the fuel surcharge increase. This attempted airfare fuel surcharge increase is a bust.

(11) March 27, 2008: Delta airlines raises domestic leisure airfares by adding a $10 fuel surcharge to most domestic airfares. This increase is also a bust when other carriers fail to match.

(12) April 10, 2008: United Airlines raises domestic airfares $10 - $30 in markets where they are not competing with low-cost carriers. All of the legacy carriers match and this one sticks. Total airfare increase now as much as $150.

(13) April 16, 2008: United Airlines raises domestic fuel surcharges by $10 to $20 roundtrip. At 8:00 a.m. CDT on Thursday, April 17, Continental and Delta Airlines match. American Airlines matched two hours after Continental and Delta, followed by Northwest Airlines later that day, and finally US Airways goes along that evening.

(14) April 24, 2008: United Airlines raises domestic airfares on most routes by three to five percent. American, Delta and Continental match the increase early the next day; Northwest and US Airways match another 24 hours later.

(15) April 29, 2008: Delta Air Lines raises domestic fuel surcharges by $40 roundtrip. American and United Airlines quickly matched the increase.

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