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  • November 21, 2007

    US Airways Initiates 9th Roundtrip Increase Since Labor Day

    Filed under: Airfare Increases, Airlines — Rick Seaney @ 12:15 am

    UPDATE: This increase is actually a “fuel surcharge” ($5-per ticket) but I have to say, for most passengers, an increase is an increase. The comments have a very nice response from US Airways …

    Could they still be a little upset over their dismal performance I reported on in the latest Zagat Survey?

    ORIGINAL POST (changed to show increase is $5-per ticket): This evening in the 8:00pm EST U.S. domestic airfare distribution the FareCompare.com proprietary airfare processing system noted significant airfare increase activity by US Airways.

    A brief 2 week respite after the eighth (8th) airfare hike since Labor Day has been broken this evening as US Airways initiates the ninth (9th) increase — $5 per ticket — encompassing both business (less than 14 days advance purchase) and leisure (14 or more days advance purchase) airfares on over 21,000 city pairs across their U.S. domestic route system.

    US Airways has rarely been the initiator of airfare increases and has tended to follow other legacy airlines in a very controlled and cautious fashion especially since its merger with America West - until this evening - where this particular airfare hike is one of the broadest I have seen from US Airways in over a year.

    US Airways has recently been vocal about issues they would encounter at oil above $90 a barrel which appears to have laid the groundwork for this out of character increase initiation (as oil continues to hover at unprecedented levels).

    Although this time of year - especially Thanksgiving week - is normally very slow on pricing activity (other than targeted off-peak holiday sales), I would expect the other legacy airlines to at least begin to partially match the increase starting tomorrow.

    Consumers that have procrastinated on purchasing their holiday airline tickets would be well advised to do so before this increase is completely matched by several airlines in the next day or so.

    5 Comments »

    1. Your an idiot. Check your sources.

      Comment by US Airways — November 21, 2007 @ 11:03 am

    2. It is always good to be called an “idiot” by someone who can’t spell “You’re” …
       
      That said — our software has been correct on every airfare increase in the past 2 years so I will recheck our software to confirm the increase.
       
      Update:
       
      I just rechecked our software and a 3rd party — US Airways filed an additional general surcharge rule last night at 8pm — with an increase of $4.65 ($5 with the 7.5% sales tax) per ticket (so $5 on one-ways and roundtrip airfares); this increase is on top of previous fuel surcharges that existed on several airfares including US Airways off-peak holiday airfares:
       
      When more than 1 surcharge is in the rules they are combined and added to the base price amount which yields to he total price amount, a third party shows the rules as following on a typical airfare:


      12.SURCHARGES
      FARE RULE
      FUEL SURCHARGE OF USD 4.65 PER FARE COMPONENT WILL BE
      ADDED TO THE APPLICABLE FARE.
      NOTE - TEXT BELOW NOT VALIDATED FOR AUTOPRICING.
      THE FUEL SURCHARGE IS ASSESSED ON EACH FARE
      COMPONENT.


      GENERAL RULE - APPLY UNLESS OTHERWISE SPECIFIED
      FUEL SURCHARGE OF USD 4.65 PER TICKET WILL BE ADDED TO
      THE APPLICABLE FARE.

      Comment by Rick Seaney — November 21, 2007 @ 2:04 pm

    3. Ooooh BURNNNNNNNNNN

      Comment by DeltaBot3000 — November 21, 2007 @ 3:15 pm

    4. Man those people over at US Airways are stupid. If only they used the Delta Pricing Bot 3000 for their pricing. However, to avoid confusion in the future you should have said it was a fuel surcharge instead of an increase.

      Comment by Delta Pricing Bot — November 21, 2007 @ 3:16 pm

    5. I am trying to understand why airlines try to spin a fuel surcharge as “not an increase” but a “surcharge”. My only guess is that it is supposed to be “temporary” in nature if it is a “surcharge”.
       
      When the consumer pays more out the door than they would have for the same airfare earlier and the revenue goes to the airline, in my book that is an increase.
       
      BTW, What is the Delta Pricing Bot 3000?

      Comment by Rick Seaney — November 21, 2007 @ 6:24 pm

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