Posted on Wednesday, 13-January-2010 at 19:07 GMT.
Related Categories: Passenger Value

If a rising tide lifts all boats, you know what to expect when rising fuel prices hit the airline industry. Get ready to pay more for your airline tickets ... again. Fuel surcharges are increasing and long-distance travel will be the hardest hit.

The Associated Press reports that major U.S. airlines are raising fuel surcharges on travel to Europe by as much as US$20 per round trip and some have added conditions that could cause passengers to pay even higher fares. Surcharges to Paris, Frankfurt and most cities in Europe have been raised to $280 per return ticket. Surcharges for round-trip travel to London are as high as $242. American Airlines recently matched increases by Delta, United and Continental. Thus far, we have not come across any reports of surcharge increases by European carriers but it's interesting to note that Japanese airlines have applied to the government for a decrease in their fuel surcharges for cargo flights out of Japan. Is it better to be a box these days?

Airlines are matching the increases for what they claim are competitive reasons. Aren't competitive reasons why airlines lower fares? Many critics insist that the surcharges, which are not consistent across carriers flying the same routes, are a simple way to raise fares. Do you agree? Here's more food for thought: some of these airlines are increasing the advance booking time required for their cheapest fares from 7 days to 14 days and have imposed peak day surcharges for popular travel dates. Doesn't that translate to a fare increase?
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