Are airline surcharges headed for $200?
It's Econ 101. Yesterday, I wrote about how Delta and American -- and later United -- raised fuel surcharges by $20 on many domestic routes. This means that many travelers will be paying as much as $130 in round-trip surcharges on top of base ticket charges.
At what point do people start cutting back on flying?
There's an interesting piece in the Atlanta Journal-Constitution that says we'll probably see as much as $60 more in surcharges -- bringing the total to nearly $200 -- before we hit that point.
A spokesman for Delta says so far his airline hasn't been hurt by the surcharges -- in fact their bookings are running a bit ahead of last year's.
And Rick Seaney, CEO of the website FareCompare.com, said he doesn't think prices have hit a "tipping point" yet either, but it's getting thisclose. Seaney, who keeps tabs on fare increases, said he estimates "there could be two or three more $20 increases before they really begin to lose customers."
That's when the airlines will either have to stop raising -- or start cutting -- charges.
Here is Seaney's timeline of airfare and surcharge hikes this year:
1. January 3rd, initiated by United, $10 roundtrip, base airfare hike, successful
2. January 11th, initiated by United, $30 roundtrip, fuel surcharge hike, unsuccessful
3. January 17th, initiated by American, $20 roundtrip, fuel surcharge hike, unsuccessful
4. January 24th, initiated by Continental, $20 roundtrip, fuel surcharge hike, successful
5. February 22nd, initiated by United, $10 roundtrip, base airfare hike, successful
6. February 28th, initiated by Delta, $10 roundtrip, base airfare hike, successful
7. March 7th, initiated by United, $10 roundtrip, fuel surcharge hike, successful
8. March 14th, initiated by United, $4-$50 roundtrip, base airfare hike, successful
9. March 19th, initiated by Delta, $10 roundtrip, fuel surcharge hike, unsuccessful
10. March 27th, initiated by Delta, $10 roundtrip, fuel surcharge hike, unsuccessful
11. April 9th, initiated by United, $4-$30 roundtrip, base airfare hike, successful
12. April 15th, initiated by United, $10-$20 roundtrip, fuel surcharge hike, successful
13. April 24th, initiated by United, $4-$70 roundtrip, base airfare hike, successful
14. April 28th, initiated by Delta, $10 and $40 roundtrip, fuel surcharge hike, successful
15. May 7th, initiated by Delta, $20 roundtrip, fuel surcharge hike, pending
(By Paul S. Makishima, Globe staff)
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