Airlines continue to increase fares and search for new revenue streams to help them cope with soaring fuel prices. United Airlines initiated what was the 16th fare hike to stick since the beginning of the year, with fare increases that ranged from $10 to $60, depending on the route. Other legacy carriers—Continental Airlines, US Airways and Northwest—matched. American Airlines upped some fares and other carriers tacked on increases as well. Rick Seaney, CEO of FareCompare.com, an airline comparison website, said that "airlines have no choice but to pass on the cost of fuel to consumers and when passengers do begin to push back in significant numbers the airlines have no choice but slash capacity by that same amount." (Source: FareCompare.com.)
 

MacNair Travel's extensive capability to book airline travel at the most cost effective rate comes from our robust and Award Winning Rate Search Method we call GoAwayDeals. Rest assured we will use all available resources to ensure each traveler receives the best fare for their flight schedule.

American Cuts Flights, Staff, Charges for First Checked Bag, Ups Other Fees

American Airlines said it would charge its passengers $15 for their first checked bag as well as cut domestic flights by 11 to 12 percent as part of its efforts to cope with fuel costs. At press time, no other carrier had followed American’s lead in charging for the first checked bag; Southwest Airlines, in fact, pointedly stated that it continues to let its customers check two bags—for free.
American, meanwhile, upped other fees, including those for oversized bags (from $10 to $15); ticket change fees from $100 to $150 for domestic tickets and from $100 to $200 to $150 to $250 for international tickets. It also upped its reservation service fee and AAdvantage Award ticket fees by $5 each to $20. US Airways took another tactic—it said it would eliminate free snacks, although it will continue to serve free soft drinks. In addition, Midwest Airlines said it would begin charging $20 to check a second bag. (Source: American, Southwest, Midwest Airlines press releases).
 

Travelers can expect baggage fees to be collected at the time of check-in or when their bags are presented at the airport.

Major Carriers Add All-Business Class International Service

The number of air travelers flying first or business class is dropping at increasingly faster rates, according to the International Air Transport Association, an industry group. And three transatlantic carriers that offered premium seating—MAXJet, Eos and, most recently, Silverjet—have ceased flying. But major carriers continue to experiment with the concept. Singapore Airlines has introduced all-business class flights between New York and Singapore. In October, Lufthansa will introduce all-business class service between Boston and Munich. That’s in addition to the all-business class service it operates between Chicago and Düsseldorf, Newark and Düsseldorf and Frankfurt and Düsseldorf. Meanwhile, on June 19, OpenSkies, a British Airways-backed carrier that has three classes of service but has allocated nearly two-thirds of the plane to premium seats, will begin to fly between New York and Paris. And L’Avion, the all-business class French carrier, is now code sharing with OpenSkies to offer three flights daily between Paris and JFK (Sources: IATA, Singapore Airlines, Lufthansa, OpenSkies and L’Avion press releases.)

Network Carriers Add International Flights, Low Cost Carriers Add Domestic

Some U.S. carriers are adding flights, many focusing on international routes. Northwest Airlines has begun flying between Memphis and Columbia, Mo., and began serving Taipei via Tokyo. Delta Air Lines began flying from New York to Georgetown, Guyana. On the domestic front, JetBlue has begun daily service from Boston's Logan International Airport to Chicago O'Hare and New Orleans. Southwest Airlines is adding flights from Denver to San Francisco and from Denver to Omaha in September. (Source: Northwest, Delta, JetBlue and Southwest press releases).

Hotels

Loews Hotels Introduces ‘Baggage Buy Back’ Program

In the wake of American Airlines’ new $15 fee for checking bags, Loews Hotels has introduced a new "Baggage Buy Back" incentive that will reimburse guests for their $15 checked baggage fee. Arriving guests simply present any airline bag fee receipt at the front desk to receive the rebate, which will be issued in the form of a credit to their bill at checkout. The Baggage Buy Back rebate is available at Loews' 18 properties in the U.S. and Canada, from June 15 through Labor Day, September 1st. Loews Hotels will offer credit for up to two bags for a maximum of $30 per occupied room per stay. (Source: Loews press release).

Sheraton, Microsoft Partner on New "Wired" Lobby