American Airlines Increases Domestic Fares $5 One-Way, $10 Round-Trip; High Fuel Costs Cited as Reason

FORT WORTH, Texas, April 28 /PRNewswire-FirstCall/ — American Airlines today filed to increase most domestic U.S. and U.S.-Canada fares by $5 one-way and $10 round-trip, effective immediately. The increase is to help offset the continuing high cost of jet fuel.

With crude oil remaining at record high levels — above $50 per barrel — all airlines have experienced significant increases in the cost of jet fuel. Each $1 rise in the price per barrel of crude oil costs American Airlines approximately $80 million a year.

In the first quarter of 2005 alone, American and its regional affiliates spent more than $1.1 billion on fuel, an increase of nearly 43 percent year over year. Over the past five years, American’s fuel expense associated with carrying one round-trip passenger has increased by more than $65 to an average $120 per passenger. Yet, the average ticket price has declined by nearly $45. “Clearly, the huge losses that the industry has experienced will continue until average fares begin to reflect the increased cost of providing air service,” said AMR’s Chairman and Chief Executive Officer Gerard Arpey. The Air Transport Association expects the airline industry to lose at least $5 billion in 2005.

American Airlines is the world’s largest airline. American, American Eagle and the AmericanConnection regional carriers serve more than 250 cities in over 40 countries with more than 3,800 daily flights. The combined network fleet numbers more than 1,000 aircraft. American’s award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve more than 600 destinations in over 135 countries.

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