Air Canada announced that in response to escalating fuel prices, it is adjusting fares to reflect additional operating costs….
Air Canada announced that in response to escalating fuel prices, it is adjusting fares to reflect additional operating costs. The fare increase applies to all fare types including published, web and other special fares for travel on Air Canada, Air Canada Jazz, ZIP and Air Canada codeshare flights.
In response to record high costs of jet fuel, base fares for flights within Canada are being increased each way by CAD$7 on short haul flights up to 799 miles and CAD$10 on long haul flights over 800 miles. Fares for flights to and from the United States are being increased each way by CAD$14 (USD$10) on short haul flights up to 1,000 miles and CAD$28 (USD$20) on long haul flights over 1,000 miles. Fares to and from international destinations are being increased by CAD$6 (USD$4) per flight segment.
The increases come into effect on tickets issued beginning May 28, 2004 for all domestic Canada and international travel, and are in effect immediately for all U.S. transborder travel.
The cost of fuel is the second largest operating expense for airlines after labour and in the case of Air Canada, fuel represented approximately 14 per cent of its operating costs in 2003, and almost 15 per cent in the first quarter of 2004.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
