Airlines Raise Ticket Prices as Fuel Costs Surge

www.wsj.com

Jet-fuel prices have surged more than 50% over the past year, pushing carriers to raise fares and Delta Air Lines to cut its profit expectations,  could take six to 12 months to recoup the extra fuel costs via pricier tickets.  Higher fuel costs have forced carriers to decide how much can be passed on directly to domestic fliers through higher fares or via surcharges on international flights. United Airlines is making small increases of between $2 and $5 per flight on domestic routes, while Japan requires airlines to include a fuel surcharge on departing flights and regulate them to move in step with global oil prices. Hawaiian Air includes a $50 surcharge or about 6% of the total ticket price, on its flights to Japan. 

Companies mentioned (YTD): United (+4%), Delta (-3%), Hawaiian (-3%) 

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