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Originally published Sunday, September 14, 2008 at 12:00 AM

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Travel Briefs | Airlines keep fuel surcharges, and more

despite big drop in oil prices Although oil prices have dropped substantially recently, U.S. airlines have no immediate plans to reduce...

AP Business Writer

Airlines keep fuel surcharges despite big drop in oil prices

Although oil prices have dropped substantially recently, U.S. airlines have no immediate plans to reduce fuel surcharges that they tack on to the price of a ticket.

Most carriers have imposed several increases in their fuel surcharges — they range up to $170 per round trip in the United States and more for international flights — on top of fare hikes.

Fuel accounts for up to 40 percent of the budget at many of the biggest airlines, topping labor as their biggest single cost.

U.S. airlines increased their fuel surcharges several times as oil prices surged, but they haven't reduced the fees as oil prices slid since their mid-July peak of more than $140 a barrel. (The price of oil on Tuesday was below $104 a barrel.)

Singapore Airlines plans to cut its fuel surcharge by up to 10 percent. The carrier said the surcharge would fall to $36 from $40 for flights between Singapore and other cities in Southeast Asia, although it didn't announce any cut in surcharges on flights to the United States.

U.S. carriers, which other than Southwest all lost money in the first half of this year, said it's too early to eliminate the surcharges.

"We've taken a look at it, but fuel prices are still well above what we budgeted for the year," said Michelle Aguayo-Shannon, a spokeswoman for Northwest Airlines. "We're happy fuel prices have come down, but they're still not in a manageable area."

Tim Wagner, a spokesman for American Airlines, the nation's largest carrier, said fuel prices "remain very volatile despite short-term trends."

Airlines closely watch the fares and fees that competitors charge because they don't like to be priced higher. The result is that when one increases fares or fees, the others often go along.

Surcharges could fall in a hurry if one of the six so-called legacy airlines steps forward. Southwest Airlines doesn't have fuel surcharges. But Southwest is among the so-called low-cost carriers. Legacy carriers often waive the fuel surcharge on routes where they compete with Southwest.

Fast new tour of San Francisco Bay

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San Francisco's Blue & Gold Fleet has introduced the RocketBoat, a new high-speed tour vessel. Capable of going more than 40 mph, the sightseeing boat offers frequent and fast trips around San Francisco Bay, with several sightseeing stops and a rock-and-roll soundtrack. It leaves from the Pier 39 West Marina and zips past the sea lions to the Bay Bridge; AT&T Park (the waterfront baseball stadium); around Treasure Island and Alcatraz Island on a 30-minute ride.

The open-air RocketBoat carries 135 passengers and will run from May through October. Children must have a minimum heigh of 40 inches to ride the boat. Information: 415-705-8200 or www.blueandgoldfleet.com.

Continental charging for first checked bag

Continental Airlines now charges many coach customers $15 for a first checked bag for travel within the U.S., matching a similar fee imposed by most other major U.S. carriers. The fee will be charged for travel to Canada starting Oct. 7

Continental customers who don't have to pay to check the first bag include elite members of its frequent-flier program, those in first- or business-class seats, customers traveling on full-fare economy tickets, or military personnel and their families traveling on official orders.

Delta Air Lines and Southwest Airlines are among the few major airlines that don't charge to check a first bag.

Free walking tours in Washington, D.C.

More than 80 free walking and biking tours will be offered Sept. 20-21 in Washington, D.C., for "WalkingTown," an event designed to highlight the capitol as a walkable city.

The event is held twice a year, sponsored by Cultural Tourism DC, a nonprofit group of Washington heritage and arts organizations.

Tours offered include bike tours of area Civil War forts and a "Spies of Georgetown" walking tour. There are also tours of monuments, Embassy Row, and tours with specialized themes, such as freedom and slavery. Information: www.walkingtowndc.org.

Favorite spots for travelers

Mexico, Las Vegas and Caribbean cruising were all high on the list of popular vacation options in a recent survey by Travel Leaders (formerly Carlson Wagonlit Travel Associates).

The top six domestic destinations this year were the same as last year, starting with Las Vegas, followed by Orlando, Fla.; Honolulu, and Maui, Hawaii; New York and San Francisco. Anchorage was No. 7 on the list. Miami tied with Phoenix/Scottsdale, Ariz., for the next two spots, and Chicago and Washington, D.C., tied for 10th place.

Mexico ranked No. 1 in the category of "best value outside the U.S.," and took five of 10 spots in the list of top international destinations, with Cancun at No. 2, Riviera Maya at No. 3, Mexican cruising sixth, Cabo San Lucas/Los Cabos eighth and Puerto Vallarta ninth.

Caribbean cruising was No. 1 on the international list, with Mediterranean cruises and Rome coming in fourth and fifth; Montego Bay, Jamaica, at No. 7, and Punta Cana, in the Dominican Republic, at No. 10.

Seattle Times Travel staff and news services

Copyright © 2008 The Seattle Times Company

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