American, Delta raise fares to offset fuel costs
CHICAGO (Reuters) - AMR Corp (AMR.N), parent of American Airlines, and Delta Air Lines (DAL.N) have raised fares on flights within the continental United States by $20 round trip to offset the high cost of jet fuel, the companies said on Thursday.
The increase, led by AMR, follows others initiated and matched in recent weeks by carriers as the price of crude oil CLc1 -- directly related to the price of jet fuel -- sets new records.
NYMEX crude notched an all-time high on Thursday above $96 a barrel before retreating.
"Just since August, average spot market crude oil prices have risen by nearly $14 a barrel," AMR said in a statement. "That increase translates into more than $1 billion of additional annual expense (for) American."
Fare increases are successful only if matched by rivals. Airlines may change fares at set times during the day. By afternoon, no other major competitors had said they matched.
The airline industry is recovering from a years-long downturn that began in 2001 with the September 11 attacks. Low-fare competition and rising fuel prices have exacerbated airline woes.
Last year, carriers began cutting capacity -- the number of seats for sale -- and raising fares.
AMR shares were down 69 cents at $23.31 in afternoon trade on the New York Stock Exchange. Delta shares were down 38 cents at $20.42 on NYSE.
(Reporting by Kyle Peterson)
