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Page added on January 4, 2008

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U.S. fliers may face separate jet-fuel fees


NEW YORK


Most U.S. airlines have a poor record of managing exposure to volatile fuel prices. Only discount carrier Southwest Airlines hedges most of its fuel needs, while others like American Airlines and Delta Air Lines are mainly at the mercy of the market.


Fare increases, the traditional way airlines boost revenue, do not help to offset sudden surges in costs because tickets are often purchased months in advance, said Mann.


And with the U.S. economy slowing, people may balk at fare increases but a separate fuel charge could be more widely accepted as consumers themselves grapple with fuel costs.


USA Today



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