Fuel costs continue to soar and most carriers are looking at large first quarter losses. Airline executives are scrambling to find additional ways to improve their economic outlook especially since they say that cost-cutting measures have largely been exhausted. Carriers have increased rates nine times since Dec. 20, but airline officials say that domestic carriers would have to raise fares an additional 15 to 20 percent just to break even. In addition to the fare increases, depending on the airline, travelers are now paying extra for many amenities that traditionally had been included in the ticket price. Anything from food to curbside check-in to preferred seating has become a target for new fees. The major U.S. Airlines, and now some international carriers, have said they will start charging as much as $25 to check a second bag. Low cost carriers such as ATA are initiating a $10 fee for a second bag. Both domestic and international carriers are also continuing to increase their fuel surcharges to help offset higher fuel costs. Also, higher ticket costs for travelers are leading to depressed demand, which is forcing airlines to cut flights and employees. A summary of some of the latest updates, along with policy and price changes are as follows:

• Air Canada, said it will begin charging its lowest-fare customers $25 to check a second bag on flights in North America. The new fee will go into effect July 15.
• Alaska Air and Horizon will increase the charge from $10 to $15 for booking reservations over the phone or at the airport. The higher rates will go into effect May 21. The airlines said they are also raising fees for overweight baggage, transporting pets and for unaccompanied minor service. They will also be reducing flight frequencies in certain markets.
• British Airways is raising its fuel surcharges for tickets across its system. The new levels will take effect for tickets issued starting May 2.
• Continental has joined United in the move to increase its change fee across all entities. The price for changes on most domestic flights will go up from $100 to $150. International fees will also increase but will vary based on the fare.
• Eos Airlines, a business class-only carrier, which operated between London and New York, filed for Chapter 11 bankruptcy protection over the weekend and ceased operations on Monday. The airline cited difficult economic conditions and the credit crunch as the reason for the move. More information can be found at www.eosairlines.com.
• Midwest Airlines said it plans to cut 2.5 percent of its flights and about 3.5 percent of its employees in all position types. The airline said it is not yet announcing which flights would be affected as it does not want to give their competition an advantage.
• Ryanair, one of Europe's no-frill airlines, said it will raise fees for checking in at the airport and for checking luggage. The carrier said it will continue to raise these fees until half of all passengers use the Internet to check-in and adhere to Ryanair's 10-kg hand luggage allowance.
• SAS International is raising its fuel surcharge by another $15 each way for new reservations starting May 1.
• United Airlines is implementing Saturday-night stay requirements for its lowest fares in about 65 percent of its markets and is increasing ticket-change fees from $100 to $150. These moves will have the greatest impact for business customers who do not want the added restrictions on the lower-cost tickets. United also said it is raising nearly all of its fares across the board by 3 to 5 percent, marking the third such increase in the past few weeks.
• US Airways is also raising its ticket change fees by $50 per ticket. Then in another revenue generating move, the carrier is introducing a new Choice Seats program starting May 7. Passengers wanting to sit in select preferred aisle and window seats can purchase a confirmed seat assignment during Web check-in. The fee starts at $5 and increases based on destination and length of the flight.

A federal appeals court ruled that the government does have the right to inspect the contents of laptop computers and other electronic devices of international travelers entering the United States, even without reasonable suspicion. This ruling is based on the determination that the government has "inherent sovereign authority" to randomly inspect arriving passengers and their baggage. The issue has been to the courts as opponents were arguing that content stored on electronic devices was intellectual property and thus different from luggage or freight. Opponents expect the issue to resurface in a higher court or Congress. In the meantime, the current ruling prompted the Association of Corporate Travel Executives (ACTE) to issue a warning that corporations and their business travelers should limit the amount of proprietary data on laptop computers and other devices when traveling out of the country. Electronic devices can not only be searched, but also seized for an indefinite amount of time. Travelers should also be aware that personal data, including photographs, finances and e-mail contained in electronic devices are also subject to examination by customers and border protection inspectors.

Airline passengers on domestic flights who are involuntarily bumped will receive more compensation when new government-imposed levels take effect next month. Bumped travelers arriving at their final destination more than two hours late will be entitled to the full price of their fare up to $800. Passengers who are bumped but get to their final destination within two hours of their originally scheduled arrival time can get up to $400. The new bumped-flier rule also applies to more planes, covering most aircraft that carry more than 30 passengers. The old law applied to aircraft that can carry 60 or more passengers.

The Department of Homeland Security announced a new program Monday designed to help the tens of thousands of travelers who are subjected to extra scrutiny because their names are similar to those on terrorist watch lists. Currently, the airlines are required to check identification and ask several security questions to verify that the passenger is not the person on the watch list. Under the new plan, innocent travelers can have the airline add their name and date of birth into the company's database to help prove their identity. Once the traveler has proven his or her identity, he or she will be able to get a boarding pass like everyone else, even over the Internet. The new plan does require the traveler to provide the extra personal information to each airline they fly on. At this point, airlines are not being required to participate in the new program.

Merger negotiations have intensified between United and US Airways after Continental announced it had decided it would not merge with another carrier at this time. Continental had recently bought out Northwest's so-called "golden share" in the carrier, which had given Northwest a say in Continental's direction. With the door now open for Continental and United's long-time interest in Continental, industry analysts had thought a United/Continental pairing was in the making. Continental officials said that after a comprehensive strategic review, it had determined that the risks of a merger outweighed the benefits. Continental will continue to grow through global alliances and will consider alternatives as it evaluates its membership in the SkyTeam alliance.

Meanwhile, executives from Delta and Northwest met with lawmakers to discuss their proposed merger. While lawmakers from both parties expressed concerns about how the merger would affect employees, many are keeping an open mind since the two carriers' networks compliment each other without too much overlap. The Delta/Northwest merger has also reignited rumors that Air Tran could revive its bid to take over Midwest Airlines. However, it is felt Air Tran will wait to see how the Department of Justice rules on the Delta/Northwest plan first. Finally American Airlines officials said the carrier will fare well even if it does not merge with other airlines.

• American Airlines is offering double Elite-Status Qualifying Miles for travel between April 16 and June 15. Members who reach a select miles/points milestone beyond the standard elite qualification level may be eligible for special elite rewards. AAdvantage members must register with bonus code AADER at www.aa.com/eliterewards to qualify. Then, American said it is expanding the scope of its code share agreement with Iberia. American passengers can now continue under the American code to eight Spanish cities beyond Madrid. Inbound Iberia customers now have access to 16 additional U.S. Cities. American also said it would test in-flight retail sales on selected transcontinental and Hawaiian flights. Airline officials said it would mostly offer items that can be used during the flight.
• Continental Airlines said it has moved all of its flights between Newark and Atlanta, Boston and Dallas from Terminal C to Terminal A at Liberty International Airport. Also, all flights between Newark and Chicago Midway and O'Hare and Washington National and Dulles will move from Terminal A to Terminal C on May 4. Continental said it will remodel and expand its Terminal B facilities at Houston Intercontinental Airport. A new concourse for regional jet operations and a new international capable concourse will be added.
• Delta Air Lines is code sharing with US Helicopter between New York's JFK and two heliports in Manhattan. A one-way ticket for the 8-minute helicopter trip is approximately $165 but is still free for most of Delta's international Business Elite travelers. Delta also said its new nonstop service between JFK and Georgetown Guyana will begin June 1 instead of July 2 as originally planned.
• Mexicana accepted a formal invitation to join the oneworld alliance. Mexicana's subsidiary click Mexicana will also join as an affiliate member. Mexicana's addition will extend oneworld's reach in Latin America to more than 130 destinations.

The Transportation Security Administration continues to move forward on tests of various programs to help improve airport security. The TSA is working with Continental Airlines on tests of paperless boarding passes. The pilot program currently being held in Houston enables travelers to receive boarding passes electronically on their cell phone or PDA, which is then is scanned by TSA officials at security check points. The test will be expanded to Continental passengers departing from Regan Washington National, Newark and Boston Logan airports in the next few weeks.

The TSA is expanding the test of its "self-select" security lane program to Pittsburgh International. The program, which is patterned after ski slope classifications, allows travelers to choose which security line best suits their needs. They can choose frequent flier (expert/black diamond), average travelers (intermediate/blue) and those needing extra assistance (green). The self-select lanes are also available in Boston, Cincinnati, Dallas Love, Denver, Houston Hobby, Oakland, Raleigh-Durham, Orlando, Salt Lake, Seattle and Spokane.

The TSA is adding the controversial whole body imaging machines at Baltimore-Washington International Thurgood Marshall Airport, New York's JFK and Los Angeles International Airport. The units can see through clothing to provide a detailed image of a person's body and thus have been opposed by privacy advocates. The TSA said it has taken steps to protect individuals' privacy and now 90 percent of travelers in Phoenix, where the units were first introduced, say they prefer the imaging machine to the traditional pat-down. The TSA said it will be purchasing at least 30 more units for use at other airports this year.

• Atlantic City's city council voted unanimously to ban smoking on the gambling floor in 11 casinos starting Oct. 15. Patrons will still be able to smoke in designated lounges away from the gaming tables and slot machines, if the individual casinos choose to provide such a facility.
• China has changed its visa requirements for individuals visiting the country for business and tourist purposes. Effective immediately, all applicants must provide a hotel confirmation and confirmed flight itinerary on official travel agency letterhead. Also, the State Department issued a Travel Alert for China, warning Americans about security issues at any large public events in the country including the summer Olympics being held in Beijing Aug. 8 through Aug. 20.
• Denver and Minneapolis are hosting the Democratic and Republican National conventions Aug 25-28 and Sept 1-4 respectively. Flights and hotels to these cities are already heavily booked. Travelers in the area should expect increased security.
• European carriers are preparing to step up tests on the use of cellphones in-flight after regulators in Brussels gave approval for the airlines to set up a common licensing arrangement. A number of hurdles still remain before the service becomes standard but Air France, Emirates and Ryanair said they are all ready to expand testing this summer. Besides working out some technological kinks, it is thought that the tests will help determine whether customers will actually appreciate the service or if there will be a strong backlash from passengers who prefer a quiet flight.