American Airlines ups fuel surcharges

American Airlines has announced increases to the fuel surcharges that passengers must pay on a number of its international flights.

The largest airline in the U.S. said it had increased the charges by $10 for one-way trips and $20 for a round-trip on most of its transatlantic and transpacific routes. The charges come into effect immediately, with few exceptions, although flights to Japan will not be affected.

The airline said the increase was being implemented to offset rising fuel costs, one of the main challenges facing the airline industry. American has predicted that fuel prices will cost around $1.97 per gallon for 2006 after the price of crude oil recently hit $69 a barrel.

In other news, the Air Transport Association (ATA), whose members include American Airlines, Continental Airlines, and Alaska Airlines, has warned that rising jet fuel prices are hindering airlines' financial progress.

John Heimlich, Vice President and Chief Economist of ATA, said the hikes meant that "airspace modernization" was needed to save "hundreds of million of gallons" and of course safeguard cheaper flights for passengers.

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