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High Oil Prices Spark Airplane Fees

Rising fuel costs has prompted airline carriers to look for ways to increase revenue. One idea is to charge travelers for items that were once free, including on-board sales of food, drinks, pillows, blankets and entertainment. Industry officials say airlines prefer complex fees to additional fare hikes because people will quit buying tickets if airlines raise prices too high.

American Airlines, United-Continental and Delta are among the carriers considering various new fees. The airlines have proposed charging customers for seat assignments, where a family of 4 will start paying anywhere from $10 to $16 to choose their seats.

Elite or business and first-class passengers would be exempt from the airlines’ proposed seat assignment fee. Travel experts believe airlines will waive the fee for travelers who book a flight and choose their seat within the last 24 hours. But fliers may pay a fee if they want to choose and confirm their seat well in advance.

Other proposed fees include charging for customized travel, including fancy food and champagne in economy class, security-line services and travel-concierge services.

Delta and American Airlines Increase Airfare

Delta and American Airlines have increased their fares, targeting First Class and Business Class passengers who make last-minute purchases.

Here’s a quick breakdown. If you’re flying less than 500 miles each way, then you’ll receive a $20 hike in fare price. For 501 to 1,500 miles, expect a fare increase of $40. Last-minute travelers will pay $60 more if their flight is 1,500 miles or more each way.

An increase in oil prices has forced Delta to increase their fare prices. The Associated Press asked American why it was raising prices. They simply replied, “We’re responding to the Delta initiative.”

Check out our review of the Kayak app and how you can travel in business class for less.  Our tips may help you minimize your airfare costs.

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