AIRLINE NEWS
Saturday, June 28, 2008
Delta Adds Fuel Fee to Frequent-Flier Tickets
In the latest fee to hit the airline industry, Delta Air Lines said Friday that it planned to begin charging a fuel surcharge of up to $50 for booking frequent-flier tickets under its awards program.
Delta is not the first airline to charge a fee for previously free tickets, but it is specifically attributing the step to the soaring cost of jet fuel.
The new fee takes effect on tickets booked on or after Aug. 15. Delta will charge a $25 fuel surcharge on tickets booked within the United States, and $50 on tickets booked for travel elsewhere, including the Caribbean, the United States Virgin Islands, Latin America and other international destinations.
Jet fuel prices have risen 83.6 percent in the last year, according to the International Air Transport Association, the global industry’s trade group. Airlines have responded with a variety of fees and charges for a range of previously free features, from checking luggage to beverages.
Jeff Robertson, managing director of Delta’s SkyMiles program, said the increase in fuel was "causing considerable financial stress to Delta’s business."
He called the step "a difficult but essential decision in the face of record-high fuel costs."
"We hope this is temporary," Mr. Robertson said, "and should fuel prices subside from current levels, we will re-evaluate this surcharge."
Mr. Robertson also said Delta would introduce a "new, multitiered award program" in the next 60 days but gave no details. Industry analysts have predicted that airlines might increase the number of miles required for a frequent-flier ticket.
Many carriers are grounding planes and eliminating flights in an effort to handle their higher fuel costs, meaning that they have fewer seats. Airlines control their inventories of free seats, and generally do not disclose how many are available on a given flight.
This month, American Airlines began charging $5 to book frequent-flier tickets. Meanwhile, US Airways will charge up to a $50 processing fee for frequent-flier tickets booked on or after Aug. 6.
Northwest Airlines said it would cancel two international routes, and suspend another until spring. Northwest is dropping its flight between Detroit and Düsseldorf, Germany, and another between Hartford and Amsterdam. The airline also is suspending a flight between Minneapolis and Paris until March.
Northwest and Delta announced merger plans in April. The carriers hope to receive federal approval before the end of the year.
Source: nytimes.com
Delta is not the first airline to charge a fee for previously free tickets, but it is specifically attributing the step to the soaring cost of jet fuel.
The new fee takes effect on tickets booked on or after Aug. 15. Delta will charge a $25 fuel surcharge on tickets booked within the United States, and $50 on tickets booked for travel elsewhere, including the Caribbean, the United States Virgin Islands, Latin America and other international destinations.
Jet fuel prices have risen 83.6 percent in the last year, according to the International Air Transport Association, the global industry’s trade group. Airlines have responded with a variety of fees and charges for a range of previously free features, from checking luggage to beverages.
Jeff Robertson, managing director of Delta’s SkyMiles program, said the increase in fuel was "causing considerable financial stress to Delta’s business."
He called the step "a difficult but essential decision in the face of record-high fuel costs."
"We hope this is temporary," Mr. Robertson said, "and should fuel prices subside from current levels, we will re-evaluate this surcharge."
Mr. Robertson also said Delta would introduce a "new, multitiered award program" in the next 60 days but gave no details. Industry analysts have predicted that airlines might increase the number of miles required for a frequent-flier ticket.
Many carriers are grounding planes and eliminating flights in an effort to handle their higher fuel costs, meaning that they have fewer seats. Airlines control their inventories of free seats, and generally do not disclose how many are available on a given flight.
This month, American Airlines began charging $5 to book frequent-flier tickets. Meanwhile, US Airways will charge up to a $50 processing fee for frequent-flier tickets booked on or after Aug. 6.
Northwest Airlines said it would cancel two international routes, and suspend another until spring. Northwest is dropping its flight between Detroit and Düsseldorf, Germany, and another between Hartford and Amsterdam. The airline also is suspending a flight between Minneapolis and Paris until March.
Northwest and Delta announced merger plans in April. The carriers hope to receive federal approval before the end of the year.
Source: nytimes.com
