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United Airlines, a unit of UAL Corp., late Thursday raised domestic air fares across the board, increasing one-way fares from $2 to $50, depending on the route and type of fare.United added $2 to $4 to each one-way fare in markets served by low-cost competitors, and $5 to each one-way leisure fare in other markets. United increased business fares — tickets which can be purchased at the last minute — by $50 each way.
Other major airlines are expected to follow United's lead.
By midmorning Friday, Delta Air Lines Inc. said it would increase its business fares by $50 each way.
Earlier this week, American Airlines, a unit of Fort Worth, Texas-based AMR Corp., said it would stop absorbing passenger facility charges in markets where there are alternative nonstop flights. Local airports collect the fees as mandated by the FAA."In layman's terms, it will cost up to $9 more (round trip) to change planes on American rather than fly United nonstop (assuming equivalent base fares)," analyst Jamie Baker at J.P. Morgan Securities wrote in a report Friday. Customers aren't likely to have a positive reaction to paying more for less convenient service, Baker wrote.
In a prepared statement Friday, Delta said beginning Friday, the bankrupt Atlanta airline also would pass on passenger facility charges to its customers.
"Ticket prices will increase between $3.00 and $4.50 each way, for certain single connecting Delta itineraries within the 50 states where passenger facility charges have previously been absorbed," the airline said.
A spokesman for Northwest Airlines Corp. said Friday that the carrier was reviewing whether to pass on facility charges to customers.
Rob, I wonder if this airline will show improved service and attention to clients' concerns in return for extra fees added to tickets?
Posted by: Ellen Weber | April 2, 2006 8:09 PM | Permalink to Comment