March 4, 2011- Fares at the main U.S. airlines are rising once again, adding to the rapid pace of almost weekly increases on both budget minded travellers and the corporate crowd that flies first class.
The airlines are justifying the increased fares due to higher fuel prices, and at first glance it would appear that this plan of action is working. US Airways stated yesterday that if they are able to continue to keep raising ticket prices, the company will be able to cover calculable increases in the price of jet fuel.
Currently, jet fuel prices are just exceeding $3 US a gallon, which is the highest it has been in any recorded March, other than the global financial crisis in 2008 when oil prices soared to their highest levels ever and cost U.S. airlines billions of dollars in lost revenue.
Delta Air Lines sparked the last round of airfare increases by tacking on upwards of $20 to the cost of domestic round-trip flight tickets that were purchased at the last minute. American Airlines followed with a slightly more limited addition of $10 per round trip but chose to apply it to almost all travel tickets within the continental U.S.
By the middle of the day on Thursday; Delta, Continental, US Airways and United were allied in setting the $10 increase that American Airlines had initiated.