Redmond’s airlines up some fares

Published 5:00 am Wednesday, June 21, 2006

All three airlines serving Redmond Airport increased fares within the past week to help offset rising prices for jet fuel.

Central Oregon business and travel industry officials, however, expect minimal impact on ticket-buying.

Atlanta-based Delta Air Lines announced last week it is increasing walk-up and first-class prices by $50 for all of its domestic flights, including the Delta Connection service from Redmond to Salt Lake City.

Since there are no first-class seats for any flights out of Redmond, the higher fares only affect passengers who book tickets within 24 hours of departure.

”In a dynamic fuel environment, we need to be flexible and be able to respond to increasing costs while maintaining a competitive fare structure,” said Delta spokesman Anthony Black.

Delta’s $50 increase on walk-up fares was matched by several national network carriers, including Chicago-based United Airlines. The increase affects the carrier’s United Express flights operated by St. George, Utah-based SkyWest Airlines, which flies routes from Redmond to Portland, San Francisco and Denver.

”We matched (Delta’s) initiative,” said United spokeswoman Robin Urbanski, also citing fuel cost as the main reason for the increase. ”But no, we don’t anticipate (the new price affecting walk-on traffic).”

SkyWest also operates Delta Connection’s flight from Redmond to Salt Lake City.

Seattle-based Horizon Air, which flies from Redmond to Portland and Seattle, increased air fares by $5 to $10 for all customers.

However, there are exceptions to the increase, said Jen McSkimming, Horizon’s media relations manager.

”The (introductory fare for the) LAX flight is still $99,” McSkimming said, referring to the service from Redmond to Los Angeles that starts Aug. 1. ”That fare wasn’t touched.”

Aaron Gellman, professor of transportation at Northwestern University and former director of the school’s Transportation Center, isn’t surprised by the fare hikes. Few major airlines used fuel hedging, or pre-purchasing fuel during times of lower prices, when it was advantageous, he said.

”The only airline to hedge (fuel) to a significant degree is (Dallas-based) Southwest Airlines, so the network (carriers) have to recoup that fuel expense somehow,” Gellman said. ”This is one of the best ways for them to try to do so.”

He added that the increases at Delta and United, because of their limited scope, should have minimal impact on passenger traffic.

”There will be an impact because demand isn’t perfectly inelastic,” Gellman said. ”But whatever’s there will be minimal. Last-minute travelers tend to be business travelers and they tend to be able to afford $50.”

Delta’s Black said the price increase affects less than 5 percent of all Delta passengers on domestic routes. The potential impact for Redmond travelers will be less since the airport lacks flights with first-class seating.

Sherry Kirkwood, manager of travel agency Journeys by Ambassador in Bend, said demand for summer tickets in Central Oregon remains high.

”Most of the people traveling this summer already bought their tickets,” Kirkwood said.

Horizon’s fare hikes are too small to dent consumer demand, she said, adding that Delta’s and United’s increases also won’t affect most travelers, who tend to book at least 14 days in advance.

Roger Lee, executive director of Economic Development for Central Oregon, took the price jumps in stride.

”Obviously, we don’t like to see (fare increases) as travelers,” Lee said. ”But if the fuel costs are going up for cars, it’s going to go up for planes, too. It’s logical, and hopefully people understand that.”

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