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NEWS ABOUT: fuel costs

Air Travelers Will See 10% Flight Cuts by Fall

Airlines plan to ax 10% of flights, 100 cities

(Newser) - Travelers will start to feel the full force of airline moves to grapple with rising fuel costs by Labor Day, as 10% of flights will be cut, a dip that will downsize the industry to post-9/11 levels, the New York Times reports. The reductions could push fares up by 40%... More »

Yanks Flood Mexico for Cheap Gas

50% surge in sales south of border

(Newser) - Soaring gas prices have Californians and Texans racing for the border and braving drug cartel violence to save some $20 per tank filling up in Mexico. American pumps have passed the $4 mark, but Mexican gas is still just $2.66 a gallon thanks to subsidies intended for poor Mexicans.... More »

Amtrak Sees Boom in Riders as Fuel Costs Soar

But shrunken rail service is nearing capacity

(Newser) - With fuel prices soaring, travelers are increasingly turning to Amtrak, which posted a record for passengers in May—not usually a big travel month, reports the New York Times. But the struggling rail service has shrunk so drastically since it was created in the '70s that it won't be able... More »

China Jacks Up Energy Prices

Gas, electricity see 17%-18% increases as nation cuts subsidies to trim demand

(Newser) - China will raise domestic energy prices starting tomorrow, the Wall Street Journal reports, with gas and diesel costs jumping 18%. China’s heavily subsidized fuel is still cheaper than international rates, and the move may be an attempt to appease foreign governments, who blame Beijing's intervention for letting demand rise... More »

Let the Carry-On Wars Begin

Checked-bag fees will lead to a crush in the overhead bins

(Newser) - With United, American, and US Airways all instituting charges for both first and second checked bags, a carry-on crunch is coming, the Wall Street Journal reminds us. Expect the baggage police to start heading off patrons flouting the cabin limit at security screenings. Airlines hope to to fight overcrowding in... More »

United Adopts $15 Checked-Bag Charge

Carrier joins American; industry passing oil costs to consumer

(AP) - United Airlines will follow rival American Airlines in charging $15 for a first checked bag. The new fee was announced today, 3 weeks after American set the precedent. United says the fee affects customers who buy tickets beginning tomorrow for domestic flights Aug. 18 or later. More »

Waiting for Green Has Gas-Conscious Seeing Red

Needless idling in turn lanes irks Calif. drivers

(Newser) - Though their safety value in heavy traffic isn't disputed, some Californians are starting to see left-turn arrows as a drag on ever-pricier gas and an avoidable threat to the environment, the Riverside Press-Enterprise reports. The California Energy Commission estimates that idling for 2 minutes (often a needless waste of time,... More »

Will Fewer Flights Mean Fewer Delays?

Sorry, says FAA: don't expect airlines to cut on crowded routes

(Newser) - With fuel prices soaring into the skies, fewer airplanes will be following suit, but don't think that translates to less time on the tarmac. Airlines' cutbacks will ground planes, but mostly on less-traveled routes to smaller cities, the New York Times reports. The congestion at LAX and JFK isn't likely... More »

High Gas Prices Are Good for Detroit

Demand rising for electric alternatives, so makers, legislators must seize moment

(Newser) - Sky-high gas prices are finally pushing top US auto-makers to turn out fuel-efficient vehicles, and both Detroit and Washington should keep the pedal down to make a permanent change in how, and what, Americans drive, the US top car salesman tells the Wall Street Journal. "You have to tell... More »

Gas Prices Hit Hardest in Rural Areas—not Suburbs

The South, Southwest, and upper Great Plains feel brunt of $4 fuel

(Newser) - Gas prices, which hit an all-time-high average of $4 a gallon over the weekend, are causing more pain in rural America than anywhere else, with motorists in the South, Southwest, and the upper Great Plains the hardest hit. With relatively low wages and high use of pickup trucks and vans,... More »

As Oil Spikes, Airlines Rethink Business Model

Expect to pay more for less as 'cheap and plentiful' era ends

(Newser) - In the 30 years since Congress deregulated airline travel, the country's major carriers have operated on a bigger-is-better strategy: fly more planes to more routes and you'll come out on top. But with fuel twice as expensive as a year ago, airlines are not just raising prices, they're radically changing... More »

Boeing, Airbus Delays Aid Battered Carriers

Airlines already well under capacity as passenger numbers fall

(Newser) - Airlines battling rising fuel costs and weakening demand have become unexpected beneficiaries of production delays on the Boeing 787 Dreamliner and Airbus A380 jumbo jets, reports the Wall Street Journal. "For the industry, it's great,” says the chair of Air Canada’s parent company, "because it means... More »

More Riders, Pricier Fuel Stress Out Transit Agencies

Diesel expenses eat up shrinking budgets even as commuters abandon cars

(Newser) - The same agencies that stand to benefit as commuters turn to public transit to escape high gas prices are finding themselves hamstrung by rising fuel costs, the Wall Street Journal reports. Ridership is up by as much as 35% for some bus lines, but the cost of diesel has doubled... More »

Another United Merger Crashes

Talks with US Airways on permanent hold

(Newser) - A proposed merger between United Airlines and rival US Airways has collapsed, just a month after a deal between United and Continental fell apart. Some analysts predicted the rising cost of jet fuel would power merger deals, but the failed negotiations have raised serious questions about the success of future... More »

As Gas Spikes, Profit Scarce for Station Owners

Oil giants like Exxon hike prices, raise rents, covet every penny

(Newser) - Feeling sorry for gas station owners might be more than the average consumer can muster these days, but, reports the Washington Post, the emotion might not be misguided. Oil giants like Exxon cut owners' profit margins and raise rents, while micromanaging details down to which shelf franchisees place soda on.... More »

Airlines Hike Ticket Prices

United raises prices by up to $60; American, Delta follow its lead

(Newser) - The big three US airlines responded to soaring oil prices by boosting most domestic prices by up to $60 roundtrip in the last few days, the AP reports. United led the way with increases from $10 to $60 Thursday; American and Delta followed suit yesterday. Meanwhile, low-cost AirTran raised its... More »

American Cuts Flights, Will Charge $15 for First Bag

Airline industry 'not built to withstand oil prices at $125 a barrel,' CEO says

(Newser) - American Airlines is cutting flights, jobs, and carrying capacity in its effort to withstand skyrocketing oil prices, the company announced today—and it's adding a $15 fee for some customers' first checked bag. US capacity could fall 12% as up to 85 planes are retired, the Wall Street Journal reports.... More »

As Fuel Soars, Airlines Clip Regional Flights

Industry braces for slow summer with 2M fewer travelers predicted

(Newser) - Soaring fuel prices have prompted airlines to cut service—sometimes completely—to some 400 cities nationwide as carriers look for ways to maximize load and cut costs, reports the New York Times. Airlines reduced flights in May by 22,900 from a year ago, a 3% decline, and discontinued service... More »

Oops! United Mistakenly Drops Fuel Charges for a Day

Travelers were able to save $130 for much of the day

(Newser) - United Airlines gave travelers a big break on ticket prices today—by accident. The airline neglected to add fuel surcharges to prices this afternoon, saving lucky buyers up to $130 per flight, the Wall Street Journal reports. United made the mistake at 12:30pm, when it filed prices with the... More »

Air Bargains Still There, But More Hunting Needed

Flexibility in schedule, destination seen as key to finding cheap travel

(Newser) - It’s no secret that airline ticket costs are up—18% on average from last year. But, the Los Angeles Times reports, deals are still there, if you’re wiling to hunt for them. Limited-time online bargains can provide cheap fares, and many travelers are searching smaller airlines’ websites for... More »

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