Four large airlines add new ticket surcharges

NEW YORK (Reuters) -- Four major U.S. airlines have added new fuel surcharges, amounting to a $20 increase on round-trip fares, starting with No. 5 U.S. carrier Continental Airlines Inc.

The surcharges, added to counteract the effects of surging fuel prices, were in effect Thursday, Continental Airlines spokeswoman Sarah Anthony said.

The charges, which come on top of previous surcharges tacked on in January, were quickly matched by American, Delta and United Airlines, representatives of those airlines said.

On Friday afternoon, crude oil futures were trading at $33.93 a barrel on the New York Mercantile Exchange, down from as much as $35.40. Oil prices have slipped somewhat from decade highs hit in recent days.

Fuel is airlines' second-greatest cost, after labor.

The January surcharge, still in effect in most markets, was also $20 round-trip or $10 each way. The airlines have also raised posted fares twice since then.

"I expect to see major fare sales in the next week or so," said Tom Parsons, who tracks airline fares for online travel company Bestfares.com. "They're throwing this $20 fee in there now to hedge their bets."

Airline fares are highly competitive and the new round of surcharges would be unlikely to hold up if not matched by Northwest Airlines. With Northwest, the top five U.S. airlines would have all added the charges.

The surcharges are not in effect where the airlines compete with low-cost carriers like Southwest Airlines and AirTran Airways, Parsons said.

United could be reluctant to match, based on the bad press it received after summer-long operational troubles stemming from labor disputes, Parsons said.

"We'll have to see how they react to this," Parsons said. "They've had more press than they want this summer."

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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