DALLAS (AP) --American Airlines doubled its fuel surcharge on Thursday to $40 per round trip just days after a slightly larger increase led by United Airlines failed.
A spokesman for Fort Worth, Texas-based American confirmed that the airline raised its previous fuel surcharge from $10 one-way and $20 roundtrip.
FareCompare.com, a Web site that tracks air fares, said the increase at midday Thursday applied to business and leisure fares on most of American's routes but not on those where the airline competes with low-fare leader Southwest Airlines Co. (LUV).
United, the nation's No. 2 carrier, raised its surcharge to $50 per round trip late last week. That move was matched by American and others, but it crumbled this week as some airlines pulled back.
The retreating airlines were afraid of giving a price edge to competitors who didn't fully match the increase. For example, Houston-based Continental Airlines Inc. (CAL) pulled the $50 per round trip surcharge when it saw that other carriers were matching - but on limited routes - an executive said.
Rick Seaney, chief executive of FareCompare, said the prospects for American's increase were helped by limited airline capacity, firm travel demand and record fuel prices. He expected the other so-called legacy carriers - UAL Corp.'s ( UAUA) United, Continental, Delta Air Lines Inc. (DAL), Northwest Airlines Corp. (NWA) and US Airways Group Inc. (LCC) - to match the higher surcharge.
A spokesman for Fort Worth, Texas-based American confirmed that the airline raised its previous fuel surcharge from $10 one-way and $20 roundtrip.
FareCompare.com, a Web site that tracks air fares, said the increase at midday Thursday applied to business and leisure fares on most of American's routes but not on those where the airline competes with low-fare leader Southwest Airlines Co. (LUV).
United, the nation's No. 2 carrier, raised its surcharge to $50 per round trip late last week. That move was matched by American and others, but it crumbled this week as some airlines pulled back.
The retreating airlines were afraid of giving a price edge to competitors who didn't fully match the increase. For example, Houston-based Continental Airlines Inc. (CAL) pulled the $50 per round trip surcharge when it saw that other carriers were matching - but on limited routes - an executive said.
Rick Seaney, chief executive of FareCompare, said the prospects for American's increase were helped by limited airline capacity, firm travel demand and record fuel prices. He expected the other so-called legacy carriers - UAL Corp.'s ( UAUA) United, Continental, Delta Air Lines Inc. (DAL), Northwest Airlines Corp. (NWA) and US Airways Group Inc. (LCC) - to match the higher surcharge.
