Skinner Seeks Airline Talks on Fuel Costs

Transportation Secretary Samuel K. Skinner is calling in airline executives to discuss the impact of sharp rises in jet fuel prices that led nearly every major carrier to announce fare increases.

Some increases went into effect today, but passengers on most airlines have until next Wednesday to book flights in advance at current fares.

Skinner wrote to several airline presidents Thursday, asking them to make appointments with him next Wednesday, Thursday or Friday to discuss how higher jet fuel prices since the Iraqi invasion of Kuwait are affecting airline finances and the public.

Delta, United and USAir all announced 5.3% fare increases Thursday that are to take effect in five days. Several other airlines announced increases earlier.

Northwest dropped a planned $8-per-flight fuel surcharge, announcing a 10% fare increase instead. American scaled back its increase from 10% to 5.3%.

Other airlines that have announced increases include America West, Midway, Pan Am, Southwest, Trans World and the Trump Shuttle.

Aviation Daily, which monitors the industry, said today that Trans World and Pan Am are likely to reduce announced 10% fare increases because none of their foreign competitors are immediately raising their prices.

Prices of jet fuel shot up from a level of 70 or 75 cents a gallon before the invasion to 80 to 90 cents this week, airline officials said.

The government has no power to regulate fuel prices or airline fares, but Skinner had earlier asked all transportation companies to show restraint in raising rates in response to increasing fuel costs.

“I am concerned about the effect of the rise in fuel costs, both on the financial position of the industry and on the traveling public,” Skinner said in a two-paragraph letter to several airline presidents. He asked the officials to brief him on the situation.