Delta, other carriers hike domestic fares, citing fuel
By The Associated Press
Posted 6:05AM on Thursday, August 11, 2005
<p>Several U.S. airlines moved to raise domestic fares by $10 to $20 per round trip as oil prices marched ever higher Thursday, reaching their highest level in more than two decades.</p><p>The move was initiated Wednesday night by United Airlines and Delta Air Lines and followed Thursday by US Airways. American Airlines and other carriers said they were studying the move and might match.</p><p>If the increase sticks, it will be at least the eighth time the industry has raised air fares since mid-February, when crude oil _ the source of jet fuel _ was selling for about $45 per barrel. On Thursday, the price of crude closed at $65.80 a barrel, the highest level since trading began on the New York Mercantile Exchange in 1983.</p><p>Airline travel analyst Terry Trippler predicted the latest fare boost would hold.</p><p>HASH(0x1d094e4)</p><p>Delta increased round-trip fares on most flights by $20 because of fuel prices, spokeswoman Chris Kelly said. On flights where the Atlanta-based airline competes with low-cost carriers, Delta raised round-trip fares $6 to $10.</p><p>Delta, the nation's third-largest carrier behind American and United, has been trying to avoid a bankruptcy filing. Its losses have totaled nearly $10 billion since January 2001.</p><p>United, a unit of Elk Grove Village, Ill.-based UAL Corp., increased fares from $4 to $10 on round trip flights in the United States and Canada. United has been in Chapter 11 bankruptcy since 2002 and is on pace to spend over $1 billion more on fuel in 2005 than it did last year.</p><p>"This (increase) was to help offset the rising cost of fuel," spokeswoman Robin Urbanski said.</p><p>Continental Airlines spokeswoman Julie King said the Houston-based carrier matched Delta's increase, while US Airways spokeswoman Amy Kudwa said that Arlington, Va.-based airline made similar increases to those of United and Delta.</p><p>___</p><p>AP Business Writer Harry R. Weber in Atlanta contributed to this report.</p><p>___</p><p>On the Net:</p><p>HASH(0x1d0bd6c)</p><p>HASH(0x1d0bdf0)</p>