Delta increases its fuel surcharge $5 each way

NEW YORK (Reuters) - Delta Air Lines Inc. said on Thursday it has increased its fuel surcharge on flights within the United States by $5 each way.

A spokeswoman for Delta, the No. 3 U.S. airline, said the surcharge was added because the price of fuel continues to outpace fares.

The increase reflects the pain that airlines are feeling as jet fuel prices, which rise with the price of oil, soar to record levels, and the U.S. economy weakens. A barrel of crude was trading around $107 on Thursday.

Delta's move is the 10th attempted fare increase by major U.S. airlines this year, six of which have stuck, according to Rick Seaney, chief executive of air fare research site FareCompare. Fare hikes last only if the they are broadly matched by rivals.

The spike in fuel prices and a weakening U.S. economy have stalled the airline industry's modest recovery from the 2001-2006 downturn.

Big airlines are beginning to shrink to cope with much tougher operating conditions. On March 18, Delta unveiled plans to cut 2,000 jobs and scale back flights, leading the efforts by U.S. carriers to cut costs.

Delta, which has been unable to seal a merger with rival Northwest Airlines Corp, will offer voluntary retirement and buyout packages to 30,000 employees.

(Reporting by Mark McSherry; Editing by Gary Hill)