Chris Cantell Discusses Travel: Higher oil prices caused higher air fares by Nina Gotzmannova

Rising prices of crude oil are making wrinkles not only on the faces of economist, analytics and businesspeople. The indirect impact can feel for example airlines customers. Several airlines had increased the prices of air fare because of the increasing price of oil, the basic fuel for planes.The first airline to do this step was American Airlines. The company raised the prices up to $ 20 for a round-trip ticket. The largest airline in the world counting passengers-miles transported stated that this step was necessary due to rising price of crude oil and they need to recover some of the costs. Fuel is the biggest amount of list of airlines expenses, other items such as food for customers or other services are no way near so expensive as the fuel is.Other airlines, such as Delta Air Lines or Alaska Airlines, continued. The prices are higher in every flight in the 48 contiguous states. But this increasing is not the first one. Since Labor Day there have been seven fare raisings, but this one is the most noticeable. But the airlines have really serious economical reasons for this step. According to Air Transport Association, the main trade group, the fuel prices rose to record highs. Tor the second quarter the costs of fuel were 5.6 percent higher, what is more than twice comparing with the rate during the same period last year. The price of oil itself rose up to 25 percent since Labor Day. Economy proved that it is a real living organism connected with all aspect of life, and no one can be unaffected.

related story: http://news.yahoo.com/s/ap_travel/20071101/ap_tr_ge/travel_brief_american_airlines_fare_hike;_ylt=AoKdjyELYF8BttndfvMPapas0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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Edited by Iveta Nagyova