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This evening in the 8pm EST domestic U.S. airfare distributions, the FareCompare.com proprietary airfare processing system noted a fuel surcharge increase by Delta Airlines matching the $25 each way fuel surcharge filed by United Airlines at 12:30pm today. Normally, we see fuel surcharge increases of $5 each way or occasionally $10 filed as a roundtrip - so this move by United and now Delta is unprecedented. (FareCompare has been tracking airfare since Oct 2004). |
It will be interesting over the rest of the weekend and into Monday what the reaction will be from the other main airlines. Southwest and American were quoted (DOWJONES) this week as having partially hedged this years fuel costs at $51 and $76 a barrel respectively. Whether or not they join in this hike will determine if it sticks or if the competitive pressure forces United/Delta to roll back or partially roll back the increase.
The next release of airfares by the Airline Tariff Publishing Company -ATPCO, (the clearing house for the majority of airline airfares) will be at 5pm EST on Saturday, with another at 5pm EST on Sunday.
– Graeme Wallace, CTO FareCompare.com (Rick on vacation Friday)
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