AMR Corp., parent of American Airlines, said Wednesday it increased its fuel surcharge on international and domestic freight shipments after the company's fuel costs topped a preset trigger point.
AMR said its American Airlines Cargo fuel index - an average of five U.S. jet fuel spot markets - reached 225.2 last week, surpassing for the second week in a row the company's trigger point of 198. The company created the threshold three years ago as a way of monitoring fuel costs.
The cargo division raised its surcharge by 5 cents to 55 cents per kilogram on international shipments originating in the U.S. and by 2 cents to 22 cents per pound on domestic cargo, effective Oct. 19. The company said it would adjust its surcharge on most shipments originating outside the U.S., as well.
American Airlines' cargo segment flies roughly 100 million pounds (45 million kilograms) of freight per week to major cities worldwide.
Shares of AMR fell a penny, to close at $11.56 Wednesday on the New York Stock Exchange.
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