New York, NY, United States (AHN) – Airlines are warning travelers to brace for more fare increases. The air carriers have hiked their fares four times since January, while for the whole of 2010 they only increased fares three times.

The fare increases were due to rising jet fuel prices, which also caused the air carriers to jack up some of their other fees, impose summer peak-time surcharges and tack in fuel surcharges for international flights.

Among the American carriers that have raised their fares on Monday by $20 to $60 on first- and business-class tickets and seven-day advance were American Airlines, United, Continental and US Airways.

Last week, Delta Air Lines hiked fares for high-end tickets by $40 and round-trip tickets by $120. Even budget airlines such as Southwest Airlines have also upped their fares.

A steady rise in oil prices, what also boosted the cost of aviation fuel is the political instability in the Middle East. Higher air ticket costs, however, is threatening the fragile recovery of the global aviation industry.

Because of the non-stop rise in oil prices, fuel now accounts for 40 percent of air carriers’ cost, up from 30 percent in 2010.

To cut fuel costs, some airlines have hedged their fuel purchases as protection against surging prices, others are changing their current models to more fuel-efficient units, however that would involve also billions of dollars in capital investment.

Because of the rise in air travel, food, clothing and fuel, the U.S. consumer price index went up 0.4 percent, according to the latest data from the U.S. Labor Department. An economist of RBC Capital Markets in New York warned that because of rising prices, more companies will pass to consumers their higher costs of operations.

View full post on Lifestyle And Leisure Stories