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Thursday, May 8, 2008 - Page updated at 09:20 AM

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Delta boosts fuel surcharge by $20, pushing it to $130 per passenger on most U.S. flights

Associated Press

NEW YORK — Delta Air Lines again raised ticket prices today, this time by increasing the fuel surcharge by another $20 round-trip.

The increase is Delta's second fare increase in just over a week. The Atlanta-based carrier's previous increase was quickly matched by competitors.

"This is obviously a result of the current market, and fares have to reflect the cost of doing business," spokeswoman Betsy Talton said.

Delta's latest increase pushes its fuel surcharge to $130 round-trip on most domestic flights. As a result, fees and taxes together now cost more than the actual base fare on several short-haul flights, said Rick Seaney, chief executive of airfare research site FareCompare.com.

Carriers have been racing to hike airfares, tack on surcharges, and charge for amenities such as extra bags and legroom as they struggle to cope with soaring energy prices. Like many airlines, Delta now counts fuel as its biggest cost.

The price of jet fuel, like gasoline, has risen rapidly along with the price of crude. A gallon on the spot market in New York was selling for $3.57 as recently as Tuesday, according to the Energy Information Administration. That is up about 78 percent from this time last year.

At the same time, carriers are cutting back on flights to reduce costs and maintain their pricing power as the economy slows. Even so, analysts expect Delta and other large carriers to have large losses this year.

Copyright © 2008 The Seattle Times Company

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