FORT WORTH, Texas, April 29 (UPI) -- American Airlines has increased most domestic and U.S.-Canada fares by $5 one-way and $10 round-trip to offset the continuing high cost of jet fuel.
American said Thursday each $1 increase in the price per barrel of crude oil costs the airline about $80 million a year. In the first quarter of 2005, the airline and its regional affiliates spent nearly 43 percent more on fuel than last year.
American's fuel cost for carrying one round-trip passenger has increased by more than $65 to an average $120 per passenger, but the average ticket price has declined by nearly $45, the airline said.
"Clearly, the huge losses that the industry has experienced will continue until average fares begin to reflect the increased cost of providing air service", said Gerard Arpey, chairman and chief executive office of AMR, American's parent company.
The Air Transport Association expects the airline industry to lose at least $5 billion in 2005.
