Continental withdraws fuel surcharge

Continental has bucked the fuel surcharge push that United initiated last week. By Monday, all six major carriers had added surcharges comparable to United’s new $25 each-way fee.

But as we saw again and again in 2007, fare increases only stick if they can muster industry-wide critical mass, so Continental withdrawing its fee not only puts the airline at a competitive advantage for as long as it can offer surcharge-free fares, but also puts pressure on other airlines to ditch their own new fuel surcharges.

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