Another Thursday night … another attempt to increase airline ticket fuel surcharges … This time the instigator is Continental Airlines who is attempting to raise fuel surcharges to $40 roundtrip - an increase of $20 roundtrip. This is the 4th airfare increase attempt in as many weeks of 2008, the previous two attempts failed with only one “sticky” airline ticket increase so far in 2008.

The domestic air travel environment remains fertile for airline ticket increases as fuel costs hover at record highs, demand remains strong (despite the looming specter of an economic downturn) and airlines continue to adjust capacity to keep flights full.

The prospects for cheaper air travel, especially for passengers who are based in cities without lower cost airline competition are likely to get even worse if/when one of the several possible legacy airline mergers occur.

On the bright side for air travelers — Continental (as well as other legacy airlines in the past few weeks) continues to be reticent to raise fuel surcharges between cities that have lower cost airline competition.

There are 3 airfare distributions on Friday and it is highly likely the increase will be matched quickly by others with a showdown early next week to see if the increase will remain “sticky”.

I will update if/when significant airline activity occurs related to this most recent fuel surcharge increase attempt.