Northwest joins new round of fare hikes

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Northwest joins new round of fare hikes

By The Associated Press September 9, 2000 2:35 p.m. CDT

EAGAN, Minn. (AP) -- Northwest Airlines said today it has joined the nation's other major airlines in raising domestic fares, adding a surcharge of $20 per round trip to cover the higher cost of jet fuel.

No. 5 Continental Airlines posted the higher fares Thursday, and by Friday, TWA and the nation's three largest carriers -- United, American and Delta -- said they would match the increase.

Northwest, the No. 4 carrier, increased fares at least twice earlier this year. The Minnesota-based carrier boosted fares in January and again in March, saying the increases were related to rising fuel costs.

"Fuel prices have continued to be up substantially year over year," said Northwest spokesman Jon Austin. "For us, fuel is a huge cost item. An increase of one cent in the price of fuel adds $20 million to $30 million a year to our cost structure."

Jet fuel prices have been rising along with the price of crude oil, which reached 10-year highs this month.

"The surcharge is certainly justified by the enormous run-up in jet fuel costs," said PaineWebber airline analyst Sam Buttrick. "But that doesn't mean consumers will continue to book eagerly."

Northwest also announced it is eliminating first-class service on its international flights, opting instead for just business and coach sections.

Copyright 2000 The Associated Press

http://cnews.tribune.com/news/tribune/story/0,1235,tribune-nation-76126,00.html

-- Martin Thompson (mthom1927@aol.com), September 09, 2000


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