The airlines are raising fares to cover higher jet fuel prices, and the strategy seems to be working. US Airways said Thursday that if the trend toward higher revenue continues, it will be able to cover foreseeable increases in fuel costs.
Jet fuel prices are over $3 a gallon, the second-highest reading in March behind only 2008, when oil prices surged to record levels and U.S. airlines lost billions of dollars.
Delta Air Lines touched off the latest fare hike by adding up to $20 to the price of domestic round-trip flights for tickets bought on short notice. American Airlines choose a more modest increase of $10 per round trip but applied it to virtually all tickets for travel within the 48 contiguous states.
By midday Thursday, Delta, United, Continental and US Airways had all settled on matching American's $10 increase. (read more)