United Hikes Fares as Oil Surges - TheStreet

United Hikes Fares as Oil Surges

Passengers will pay an additional $5 to $30 for one-way tickets, depending on miles traveled.
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CHARLOTTE, N.C. -- In response to skyrocketing oil prices,

United

(UAUA)

has imposed an immediate price increase for domestic fares.

The increase, which took effect Thursday, means passengers will pay an additional $5 to $30 for one-way tickets, depending on miles traveled. The biggest increase is $30 for trips above 750 miles, or $15 in markets where United faces competition from low-cost carriers.

Additionally, for mainland-Hawaii flights, United has increased its fuel surcharge to $100 from $85.

Meanwhile, other carriers are seeking to keep up with fuel cost increases by imposing fees for baggage.

American

(AMR)

said Wednesday it would

charge some passengers $15 to check their first bag

. United is "seriously studying" a similar increase, said United spokeswoman Robin Urbanksi.

Frontier

(FRNTQ)

said Friday it will add a $25 fee for a second checked bag for some passengers who purchase tickets after June 9. Additionally, Frontier said the fee for children traveling alone will increase from $40 to $50

"Unfortunately, we need to review our fee structure to help offset this incredible increase in fuel," said CEO Sean Menke, in a prepared statement.

Shares of United's parent company, UAL, traded to a new low Friday as the broader market tumbled. The stock was recently down 50 cents, or 6.1%, at $7.65.