Airlines withdraw fuel fee increase

NEW YORK – Major U.S. airlines on Tuesday rolled back a fuel surcharge increase aimed at offsetting soaring oil prices as consumers balk at higher ticket prices and worries over the health of the economy grow.

AMR Corp’s American Airlines, Delta Air Lines Inc. and US Airways Group Inc., all rolled back the increase on Tuesday, following Northwest Airlines Corp., which withdrew the increase on Monday, according to fare tracker FareCompare.com.


American Airlines had initiated the increase last week, doubling its domestic fuel surcharge to $40 per round-trip fare, except in markets where it faces low-fare competition.

Northwest said it backed off the increase for competitive reasons.

“It’s basically failed,” Rick Seaney, chief executive of FareCompare.com said of the latest increase. “It doesn’t surprise me at all with all the economic bad news the last few days.”

Reuters