US in with New Fees at LAX

[BuffaloJoe]

US Airways adds fee

Did all the airlines fees go up? I thought it was just UA.

 

[SS255]

US Airways adds fee

Did all the airlines fees go up? I thought it was just UA.

So far I believe it's just UA and US.

 

[Sthrnboy]

So far I believe it's just UA and US.

DELTA Airlines also added this fee.

LAX: United 'exploiting' dispute to boost profits with $10 fee
US Airways "quickly matched" a $10 surcharge for all passengers departing from Los Angeles International, The Arizona Republic reports. Yesterday, United became the first carrier to add the fee for LAX fliers. USA TODAY reports that Delta also has matched the $10 charge, adding that the fee "for the first time brings travelers directly into the long-running dispute between LAX and the airlines that operate at the USA's No. 4 airport. The three airlines account for 32% of the seats departing LAX this month, according to schedule information from Back Aviation Solutions." Most other airlines say they're considering surcharges of their own, according to various media sources. One exception –- so far -– is Southwest, which tells the Republic that it has no plans to adopt a similar surcharge.

United says it had to adopt the surcharge to offset a rent increase by LAX that the airline says will cost it $10 million. But the airport fired back, saying United was "exploiting" the dispute to help its own bottom line. In a statement, the airport says that "in 2006, United reported more than 4,885,353 enplaned passengers at LAX. Assuming the same level of traffic this year, the airline's $10 increase per passenger will generate more than $48 million in additional revenue. Yet, United claims the increase in ticket price
-USA TODAY

 

[FlyDCJets]

Several Match United's LAX Departure Surcharge

APRIL 12, 2007 -- Several major U.S. carriers have matched the $10 surcharge United Airlines yesterday began levying on flights departing from Los Angles International Airport. American Airlines and US Airways today confirmed a similar surcharge, and sources said Northwest and Delta also have joined the fold. Continental Airlines, however, said it is not imposing the fee for flights out of LAX.

United Airlines yesterday cited a rent increase from Los Angeles' aviation authority, which was applied to all carriers at the airport (BTNonline, April 11).

Although United said the increase represents $10 million in annual expenses at the airport, LAX operator Los Angeles World Airports last night in a statement said the surcharge "wildly exceeds the airline's full and fair share of the costs to maintain and operate its terminal facilities at LAX."

Regards
DC

 

[whlinder]

United says it had to adopt the surcharge to offset a rent increase by LAX that the airline says will cost it $10 million. But the airport fired back, saying United was "exploiting" the dispute to help its own bottom line. In a statement, the airport says that "in 2006, United reported more than 4,885,353 enplaned passengers at LAX. Assuming the same level of traffic this year, the airline's $10 increase per passenger will generate more than $48 million in additional revenue. -USA TODAY

This is incorrect. The $10 is subject to the US federal 7.5% excise tax, so for domestic tickets UA will only keep $9.30 for each ticket. To generate more than $48 million in revenue, UA would have to sell around 80% of their ex-LAX (heh) tickets as international itineraries. I doubt that is even close to the case.

 

[SegmentKing]

Actually UA may only board 30 - 50% of the 4 million passengers...

they are only charging those passengers who *originate* in LAX.. so its really LAWA who is now spinning things a bit!