Nonstop airfares to rise sharply

Many carriers doubling, tripling their lowest U.S. summer rates

Published: Thursday, June 5 2008 12:07 a.m. MDT

DALLAS — If you're taking a nonstop flight to summer vacation, better pony up a lot more money or start unpacking.

In many cases, major carriers have more than doubled or even tripled their cheapest U.S. fares from last summer's fares. That's on top of the new fees for checking luggage and other services.

Tom Parsons, chief executive of the discount travel site Bestfares.com, looked at the lowest fares for nonstop travel in July — the kind of tickets that usually must be bought long in advance and therefore appeal mostly to vacationers, not business travelers.

Parsons said where major carriers offer nonstop flights and low-fare competitors offer only one-stop service, fares are up to 365 percent higher than a year ago.

Last summer, Parsons said, American Airlines offered fares as low as $238 for July travel between Phoenix and Miami. This year, the lowest fare is $660, he said.

Delta's lowest Atlanta-Tampa nonstop round trip starts at $392 for the week of July 22, compared with $148 last year, Parsons said. And United's best deal for Chicago-Charleston, S.C., is $730, up from $178 a year ago, he said.

In all the cases, Parsons said, low-cost carriers such as Southwest Airlines Co. offer only one-stop or slower service.

"You better look for alternate airports or one-stop service because airlines are betting that they can get away with these fares," he said.

The major airlines have raised fares about a dozen times since late last year to offset skyrocketing costs for jet fuel, which has nearly doubled in price over the past year, pushing most airlines into the red.

The older, so-called legacy carriers are also adding or increasing fees for things such as checking a second piece of luggage, changing flights and putting a pet on board. This month, American will begin charging $15 for the first checked bag.

Officials for the major airlines did not dispute Parsons' figures but explained that they must raise fares to cover higher costs, especially fuel.

David Castelveter, a spokesman for the Air Transport Association, an airline industry trade group, said average fares are less than 1 percent lower than they were in 2000 but the price of jet fuel has increased 217 percent in the same time. He said the carriers were "playing catch-up."

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