Some of the nation’s biggest airlines have decided to give themselves an early holiday present this year. Delta, US Air, United and American are charging a $10 “surcharge” on fares for the peak holiday season, such as weekends following Thanksgiving and New Year’s. Airlines said they were bumping up fares by means of a surcharge simply because it is easier than imposing a straight fare increase for a limited period of time.
When looking at an affected flight on those days, the base fare will include the surcharge, making the increase “invisible” to the customer.
Airlines have had a tough time raising fares recently as demand for air travel has continued to drop. And while the carriers have cut capacity, they’ve still had to offer promotions and deep ticket discounts to fill their planes.
Predictions are that the nickel-and-diming of passengers would eventually result in a fall-off in traffic.
We never know what the airlines will come up with next to increase their revenue.
On another note, another airline jumps in to charge for seat assignments. British Airways is planning to charge customers a fee to guarantee a specific seat assignment. Domestic economy passengers will pay $16 to choose a seat at time of booking. For Business Class passengers with short flights and Economy and Premium Economy longer flights the fee is $32 and the longer flights in Business Class will cost $97 to have a specific assigned seat.
These charges do not apply to First Class Passengers, members of the airline’s Gold and Silver Executive Clubs, those traveling with infants or passengers with special needs.
Those passengers not wanting to pay the fee for early guaranteed seat assignments can select their seats at check in, either online or at the airport.
Analysts say the airline’s move is a sign of the times, as the recession cuts into every carrier’s revenue base and the airlines look to raise money any way they can.
British airways recently reported an annual loss of about $595 million and said it would raise $1 billion through loans and bond sales.
Written by: C Kennedy
kennedy@atlastravelweb.com
