CHICAGO UAL Corp UAUA.O, parent of United
Airlines, said on Friday it has increased its domestic fuel
surcharge, bringing the total to $25 each way on all domestic
The increase in the surcharge, which is in addition to the
base air fare, varies depending on the market. In some markets
where United faces low-cost competition the surcharge had been
$5 or less. Elsewhere the surcharge had been $10.
The airline industry has been pressured by skyrocketing
fuel costs as the price of oil hovers near $95 a barrel.
Carriers have attempted to offset that expense with fare hikes
Last week, UAL initiated a fare increase that was broadly
matched by competitors. But some analysts predict carriers will
have trouble raising fares if economic weakness erodes travel
"Every penny increase in a gallon of jet fuel costs our
industry $195 million annually, and while we operate more
efficiently, we must be able to pass commodity costs on to
customers, as other industries do," said UAL spokeswoman Robin
Representatives from other airlines were not immediately
available to say whether they would match the surcharge.
Shares of UAL were down 33 cents, or 1 percent, at $31.86
in afternoon trade on Nasdaq.
(Reporting by Kyle Peterson; editing by Mark Porter)