Column: Fuel prices and strong demand push airfares up

04/6/2011 | Wall Street Journal, The

Every penny increase costs airlines $175 million, according to the Air Transport Association, and fuel costs have topped labor costs as the biggest expense for airlines. Even after months of steadily rising oil prices, however, airfares have not experienced "the huge jump you might expect," Scott McCartney reports. Heavily traveled business routes have risen in price by 20% or more, "yet some of the most intensively competitive routes have dropped in price, despite all those fare increases," McCartney writes.

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Wall Street Journal, The

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