Jet fuel costs drowning low-cost fares

Published: June 20, 2008 at 8:56 AM

NEW YORK, June 20 (UPI) -- The gap in prices between low-fare U.S. airlines and the rest of the flying crowd is blurring as fuel prices rise, industry analysts said.

"Low-fare carriers are not immune from oil prices," AirTran Chief Executive Officer Robert Fornaro, told The New York Times. "The question is, 'How do you get there, fares or fees?' We think it's better to do both."

Southwest and JetBlue had maintained a price cap of $299 for one-way tickets, the Times reported. But the caps have been obliterated by rising jet fuel prices and Southwest's slogan "You are now free to move about the country" has been changed to "Freedom from fees."

Air fares have risen 18 percent in the past year and many carriers have added a variety of fees.

In comparing prices, the Times reported that David Willenborg, a businessman from the Dallas suburb of Plano, Texas, paid $415 recently for a round-trip ticket on Southwest to Detroit.

The fee has risen 30 percent, more than the industry average, the Times reported.

But Willenborg told the newspaper that American Airlines would have charged more than $1,000 and added $40 for checking his suitcase and golf clubs.

© 2008 United Press International, Inc. All Rights Reserved.
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