United Airlines raises fuel surcharge to $20 roundtrip

United Airlines raises fuel surcharge to $20 roundtrip

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Story Published: Apr 16, 2008 at 8:51 AM PDT

Story Updated: Nov 20, 2008 at 6:30 PM PDT

By Associated Press

NEW YORK (AP) - UAL Corp.'s United Airlines said Wednesday it raised its domestic fuel surcharge by $10 to $20 roundtrip, less than a week after the nation's second-largest carrier increased fares to offset rising fuel expenses.

The move, which went into effect late Tuesday night, comes after oil prices topped $114 a barrel for the first time, and will likely put pressure on other airlines to follow suit.

Travelers in some markets who were paying a surcharge of $25 one-way will now see that charge increase to $35, spokeswoman Robin Urbanski said. Fliers in markets where Chicago-based United previously did not apply a surcharge - mostly where the carrier competes head-to-head with low-cost carriers - will now be charged an additional $5 one-way.

United last week raised fares by $4 to $30 round-trip, citing "record-breaking fuel costs." That prompted other major carriers to increase their own ticket prices.

The added surcharge, which amounts to a fare increase, marks the 12th time this year airlines have tried to raise ticket prices across much of their route networks, according to airfare research Web site FareCompare.com.

Four of the past increases were rolled back, however, after competitors failed to follow with increases of their own.

"My gut tells me that this attempt may not make it ... but I cannot rule out the possibility of major matching in the next 5 days," FareCompare.com Chief Executive Rick Seaney said in an e-mail about United's latest move.

In early electronic trading on the New York Mercantile Exchange, light, sweet crude for May delivery rose as high as $114.53 a barrel before retreating to $113.74 by the afternoon in Europe, down 5 cents from Monday's close.

Urbanski said United expects to spend an additional $2 billion on its fuel bill this year.

United shares fell 14 cents to $22.18 in early trading.

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