Travelers are feeling the sting of high gas prices as they weigh summer plans
The high cost of fuel is making summer vacations more expensive -- and staycations more appealing. But the travel industry says the extra premium is not deterring Americans from booking trips, especially after the coronavirus pandemic complicated travel for the past two summers. US airlines report that high demand is allowing them to raise airfares and offset the extra fuel costs. But trend watchers say average airfare is still down from pre-pandemic levels. Some Boeing 737s carry nearly 6,900 gallons of fuel, which at recent prices reported by the US Energy Department would cost about $13,300 more than a year ago. Delta Air Lines said it expects to burn 750 million gallons of fuel in the first three months of this year alone. Fuel is one of the largest expenses for airlines, and with the price per gallon for jet fuel at levels not seen since 2008, several US carriers are signaling they will pass the increase along to travelers. Delta executives said at a conference this week organized by JP Morgan that passengers can expect fare increases "between 15 and 20 dollars each way," which is about 10% of a $200 ticket. United Airlines and JetBlue Airways also indicated higher fuel costs will be baked into ticket prices.Henry Harteveldt of Atmosphere Research said he expects fare increases to be "moderate" and "incremental," noting airlines have other, less noticeable ways to increase prices. "They can increase the prices they charge us for optional products," he said. "I don't know that they will increase the fees for checked bags because that's so polarizing, and they know it's a bad PR move, but they may increase the amount they charge to reserve a seat on the plane, to get on the plane early, or go through priority security screening, for an airport lounge." Even before the Russian invasion of Ukraine drove the price of oil to new heights, airfares were climbing over last year's levels.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-03-21/general/travelers-are-feeling-the-sting-of-high-gas-prices-as-they-weigh-summer-plans
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Travelers are feeling the sting of high gas prices as they weigh summer plans
The high cost of fuel is making summer vacations more expensive -- and staycations more appealing. But the travel industry says the extra premium is not deterring Americans from booking trips, especially after the coronavirus pandemic complicated travel for the past two summers. US airlines report that high demand is allowing them to raise airfares and offset the extra fuel costs. But trend watchers say average airfare is still down from pre-pandemic levels. Some Boeing 737s carry nearly 6,900 gallons of fuel, which at recent prices reported by the US Energy Department would cost about $13,300 more than a year ago. Delta Air Lines said it expects to burn 750 million gallons of fuel in the first three months of this year alone. Fuel is one of the largest expenses for airlines, and with the price per gallon for jet fuel at levels not seen since 2008, several US carriers are signaling they will pass the increase along to travelers. Delta executives said at a conference this week organized by JP Morgan that passengers can expect fare increases "between 15 and 20 dollars each way," which is about 10% of a $200 ticket. United Airlines and JetBlue Airways also indicated higher fuel costs will be baked into ticket prices.Henry Harteveldt of Atmosphere Research said he expects fare increases to be "moderate" and "incremental," noting airlines have other, less noticeable ways to increase prices. "They can increase the prices they charge us for optional products," he said. "I don't know that they will increase the fees for checked bags because that's so polarizing, and they know it's a bad PR move, but they may increase the amount they charge to reserve a seat on the plane, to get on the plane early, or go through priority security screening, for an airport lounge." Even before the Russian invasion of Ukraine drove the price of oil to new heights, airfares were climbing over last year's levels.<br/>