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Airlines say to expect higher fares and other changes due to rising fuel costs

 At the recent International Air Transport Association general meeting, which was held in Sydney, Australia, airline officials shared concerns that the continued rise in fuel prices would force carriers to respond with higher ticket prices. In fact, some fares are already up. According to Rick Seaney, CEO of FareCompare.com, some domestic airfares are about $5 to $10 higher, especially in markets with less competition.  Transatlantic rates are also up on some routes, but in markets with ultra-low-cost startup airlines fares have remained stable.

Another means for airlines to combat higher fuel costs is to implement fuel surcharges. Some long-distance flights to Asia are already subject to surcharges ranging from $50 to nearly $200. Airlines can only use this tactic on international tickets as the U.S. Department of Transportation disallowed the practice on domestic tickets several years ago.

In addition to boosting fares or adding surcharges, airline officials said they would also be looking at cost cutting measures including reducing capacity or discontinuing underperforming routes.


Amtrak alters operations due to repair work at New York’s Penn Station

As repair work continues at New York’s Penn Station, Amtrak announced that this summer some New York trains will operate out of Grand Central Terminal instead. Included in the move are all Empire trains to upstate New York and the Ethan Allen to Rutland, Vermont, along with the Adirondack to Montreal and the Maple Leaf to Toronto.

Amtrak also said it will temporarily suspend service between New York and Chicago aboard the Lake Shore Limited. A separate Lake Shore Limited between Boston and Chicago will continue to run.

Trains moved to Grand Central will be returned to Penn Station on Sept. 4. The New York Lake Shore Limited will also be restored on Sept 4, 2018.

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