Fuel is the second biggest expense behind labor, so when fuel prices continue to remain high, the chances of fuel surcharges will continue to hang over the airlines. Just the other day, Delta Air Lines raised surcharges crossing the Atlantic by $10. Now most of the legacy carriers are following suit, though Continental has yet to commit to raising any fares.
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American Airlines and United Airlines, the world's largest carriers, Friday joined Delta Air Lines in raising a surcharge on trans-Atlantic flights by $10 each way to help cover rising fuel costs.
The surcharge increases to $75 each way. US Airways and Northwest Airlines also raised the fee, a day after Delta adopted it for most trans-Atlantic flights that start in the U.S. or connect through the U.S. from the Caribbean, Central America and South America.
Airlines have been boosting fares and surcharges as fuel prices have risen 27 percent during the past year. American, United, Delta and other large carriers also are shifting some U.S. capacity to international markets, where there is less competition from low-fare airlines. Carriers last raised trans-Atlantic surcharges in April.
Continental Airlines said it was studying whether to match this week's increase.
Northwest raised its surcharge only on flights starting in the U.S. and Mexico, while US Airways applied the higher rate only on flights originating in the U.S., spokesmen for those airlines said.
Fuel, historically the second-largest expense for airlines after labor, has become the biggest cost at some of the companies in the past year.
Delta and Northwest have been in bankruptcy since September, and United and US Airways exited Chapter 11 protection in the past year. All of the five largest U.S. airlines — American, United, Delta, Continental and Northwest — posted losses in the first quarter.
The International Air Transport Association on Monday widened its forecast for the industry's worldwide losses this year to $3 billion, saying rising oil prices are outstripping the benefits of economic growth and higher ticket prices. The trade group earlier estimated 2006 losses of $2.2 billion.
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