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Fuel prices fall, but not fares

October 27, 2006

United Airlines today said it has increased fares by $6 per round trip on certain flights, citing higher fuel costs. American Airlines and bankrupt Delta Air Lines matched the move.

There’s just one inconvenient fact: fuel prices are falling.

The price of crude oil, which is most closely linked to the price of jet fuel, is down more than 20 percent since August. A barrel of crude costs $60.75 a barrel.

Airlines are going to have to offer a better reason for raising fares.

Maybe they can cite “competitive conditions” or just say something vague about the cost of doing business. Even though passengers expect to be lied to by their airline, that shouldn’t give the airline a blanket license to do so.

When fuel costs go down, please don’t tell us fuel costs are up. Running an airline may be difficult, but passengers are smart enough to know the difference between “up” and “down”.

Is it asking too much to expect an airline to know that, too?

Update: United rescinded its fare increase over the weekend. (10/30)

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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