Continental System Wide Airline Ticket Fuel Surcharge Increase

Continental Airlines

Tonight, Continental Airlines increased Domestic fuel surcharges by $1.86 one-way (2$ one-way with the 7.5% U.S sales tax). This is on the heals of matching Deltas $5 one-way airfare increase initiated last Thursday night.

Fuel surcharges are added on domestic airfares using the “Surcharge Rule” which is one of the 20+ rules on each airfare. Consumers will see a $4 increase. Continental will only pocket $1.86 one-way (the U.S government the other $.14).

A few interesting notes about this fuel surcharge increase:

  • The fuel surcharge is only charged for travel departing on/before 20-August-2007 (most purchases for domestic are less than 45 days in the future)
  • Continental was testing their fuel surcharge filing last Thursday (21-June) at mid-day before Delta initiated a system-wide base airfare increase that evening (Continental raised surcharges $4.65 one-way mid-day).

    Continental subsequently rolled their fuel surcharge increase back the next Friday opting to increase base airfares in its place to match Delta where they pocket the entire consumer increase (instead of 92.5% of the consumer increase due to U.S. sales tax)

Statistics:

Advance Purchase

$ Increase Markets

Total Markets with this Advance Purchase

Increase Market

0

13,625

17,612

77%

3

9,352

12,591

74%

7

11,582

15,777

73%

14

11,925

16,246

73%

21

7,220

9,200

78%

Note: Due to competitive nature of each market airlines do not always have 3, 7, 14, 21 day advance purchase airfares in all markets

Author:

Published: June 28, 2007