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Airfares in Twin Cities head up and away
Additional fees and fuel surcharges drove passenger costs at the Minneapolis-St. Paul airport in the second quarter.
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The average domestic airfare at Minneapolis-St. Paul International Airport rose 17.7 percent in the second quarter compared with a year ago -- the third-largest increase among the nation's 100 largest airports, the U.S. Transportation Department said Wednesday.
Airlines raised fees and fuel surcharges this year as they tried to offset high costs for fuel, which peaked at record levels in the first week of July -- just after the second quarter ended. Even with the increases, however, most major U.S. airlines lost money in the quarter.
The average U.S. fare at Northwest Airlines-dominated MSP was $425, up from $361 a year ago, the report said.
Nationally, fares jumped 8.1 percent to their highest level since the government started keeping track 13 years ago. Fare prices cited in the report include fees and surcharges.
Part of the reason for the steep increase at MSP was Northwest's foresight in raising fares to cope with the fuel prices, Minneapolis-based travel expert Terry Trippler said.
"They were ahead of the game in getting their fares where they needed to be," Trippler said.
The March arrival of low-fare carrier Southwest Airlines will change the game. Southwest unveils its MSP flight schedule next week, and Northwest is expected to match fares on those routes and lower fares on connecting flights, Trippler said.
"It will have an immediate impact," he said. "You can take that to the bank."
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