Air fares set to rise due to fuel costs

First quarter earnings reports for major U.S. carriers shows soaring jet fuel costs are severely straining the airline industry, and making ticket prices soar for travelers.



Jet fuel price are tied to crude oil which hit $120 dollars a barrel Tuesday.



The high price of fuel could force the airlines to raise fares 20 to 25 percent in the coming months to offset the sky-high costs of doing business.

 

The top U.S. airlines have burned through a combined billion dollars in fuel costs in the first quarter alone. 

 

United, American, Continental, Northwest and Delta, are all struggling to keep up with skyrocketing jet fuel prices that have more than doubled in the past year. 

 

Rick Seaney, CEO of Farecompare.com said, "What used to be the second most expensive cost for airlines, is by far the most."



Airline travel expert Rick Seaney says the staggering fuel expenses are adding up to more trouble for the airlines in the form of bankruptcies, mergers and added passenger fees.



Most airlines are bringing in more revenue but the sustained high fuel prices are wiping out most profits.

 

"Right now, some airplanes are flying airplanes completely full and still losing money. That's scary for airlines," said Seaney.



For travelers, it means higher prices at a time when passenger satisfaction is at its lowest in decades. 



Airlines are cutting back on flights and services but raising fees on everything from fuel surcharges, extra baggage and even choice seats. 



Seaney said, "The airlines have to be careful about pricing themselves out of the market. It's really balancing on the edge of a razor blade right now."



The best advice for consumers heading into vacation season, shop earlier for tickets, be flexible with dates and when you see a price you like, don't wait.

 

Starting in May, United and U.S. Airways will charge extra for a second checked bag.



And U.S. Airways will also begin its choice seats program, which will charge passengers five dollars extra for an aisle or window seat on some of its flights.