Continental Airlines (NYSE: CAL) said it is seeking to offset dramatically higher fuel expenses with a fare increase of $10 each way, effective today. The increase applies to all published U.S. domestic and international fares.
Continental has annual jet fuel expenses exceeding $1 billion and this cost has been rapidly rising as a result of higher crude oil prices, which today exceed $36 per barrel—the highest since October 6, 2000.
“Although the airline industry is suffering from overcapacity and weak demand, this fare increase is necessary to get Continental back on the path to financial recovery,” a spokesperson said. “Even with this increase, air fares today are a bargain by any measure.”