After United announced it would impose a $10 fare surcharge to all passengers travelling through Los Angeles International Airport(LAX), the Los Angeles World Airports(LAWA), the parent agency of the airport, issued a press release condemning the action as “exploiting a justified increase in its maintenance and operations costs in order to dramatically increase profits on Los Angeles passengers.”
As they continue, in 2006, United reported more than 4,885,353 enplaned passengers at LAX, and assuming that number this year, the $10 increase will generate more than $48 million by LAWA’s estimate, even though the increase in costs assessed by LAWA was only $10 million.
LAWA feels the increases of $10 million are warranted due to increase charges that they had previously absorbed themselves.