May 26, 2010 in Business

Airlines add summer fees

Major carriers plan surcharge of up to $30
Hugo Martin Los Angeles Times
 

LOS ANGELES – Cashing in on an expected increase in summer air travel, the nation’s largest airlines are charging passengers a “peak travel surcharge” of up to $30 per seat for flights most days this summer.

The country’s major airlines have imposed a “peak travel surcharge” on 74 of the 98 days from Memorial Day to Labor Day, according to an analysis by farecompare.com, a website that keeps track of fees and fares.

The airlines have also added peak travel fees for flights on several days around the Thanksgiving, Christmas and New Year’s holidays.

In contrast, in 2009 the airlines added peak travel fees on only about 15 days toward the end of the year, including the day after Thanksgiving.

But not all airlines have plans to tack on the peak travel fee. Low-cost airlines such as Southwest and Alaska airlines say they don’t expect to follow the lead of the bigger air carriers.

“That’s not a trend that Southwest Airlines sees as a benefit for the company,” said Southwest spokeswoman Whitney Eichinger.

Airline fees are nothing new. As demand began to slump during the economic tumult of the last two years or so, the nation’s struggling air carriers have added charges for checked bags, carry-on bags, snacks, drinks and pillows.

But this summer, the five biggest airlines – American, Continental, Delta, United and US Airways – are no longer limiting the peak travel fee to only a few days around the holidays.

A passenger on a major airline who checks one bag and travels on a peak travel day can expect to pay up to $110 round trip in fees in addition to the fare.

By adding the fees, critics say, airlines can more easily increase fares as demand begins to rise.

“What we are seeing, basically, is a change in the way the airlines raise their fares,” said Rick Seaney, founder of farecompare.com.

Airline officials defended the surcharges, saying that more planes will fly at near capacity this summer, and noting that the new charges will be clearly spelled out to passengers before they buy a ticket.

“It is simply a different way of filing a fare change that is less cumbersome administratively to file in situations where it is aimed at specific dates,” said American Airlines spokesman Tim Smith.

The airlines have added highest fees – $30 per ticket – for flights on most Sundays this summer and the lower fees – $10 per ticket – for flights Monday and Tuesday.

The only Sunday from Memorial Day to Labor Day when the major airlines won’t charge a peak travel surcharge is July 4, a slow travel day because most people are celebrating the holiday.

Airline travel demand has declined over the last two summers but is expected to rise about 1 percent this summer, an increase of about 202 million passengers compared with last summer, according to a recent forecast by the Air Transport Assn. of America, the trade group that represents most U.S. airlines.


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