United Airlines, the second largest US carrier, has increased ticket fees. In an attempt to combat hight fuel costs, tickets costing $100 will now cost $150.
This is the second time the company has raised ticket prices. Earlier this month the carrier announced that it would be increasing the cost of round trip tickets by $4-$30.
Reuters reports that the recent change in the company’s ticketing policy will affect 65 percent of the markets it serves.
That will have the most impact on business travelers, who typically don’t want to spend a Saturday night in their destination. U.S. airlines have announced a number of fare hikes, fuel surcharges and fee increases recently as they battle higher fuel prices and a weakening economy.
According to BusinessWeek, airline operating costs have surged as the prices of jet fuel, like gasoline and oil, have jumped in the world market.
United’s 3 percent fare increase affects routes where it competes head-to-head against low-cost carriers such as Southwest Airlines Co., while the 5 percent increase applies to routes where there is no competition from budget carriers.
Robin Urbanski, a spokeswoman for the United Airlines, is quoted analyzing the recent changes made in the company’s ticketing policy.
“In an environment where fuel prices are averaging almost $120 a barrel, we are facing a cost increase of more than $2 billion this year and that is more than twice the operating earnings we generated last year. Making these changes is another example of how we need to continue to adapt to today’s tough market realities and find new ways to generate revenue.”
Photo:© matt.hintsa
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