Report: More fees, less choice for air travelers - 13 WTHR Indianapolis

A new government report doesn't raise much hope for a better experience for passengers aboard U.S. airlines.

It says consumers can expect fewer carriers to choose from, fewer flights to smaller cities and more baggage and other fees. This, as the industry continues to grapple with high fuel prices and a weak economy.

The Transportation Department's inspector general says the airline industry is still in transition after a tumultuous decade in which bankruptcies and mergers cut the number of airlines accounting for the bulk of domestic flights in half, to just five: American, Delta, Southwest, United and US Airways. And, if US Airways and American - which are in merger discussions - were to combine, that would drop to four.

The report says reduced competition has enabled airlines to try to offset higher costs by eliminating less profitable flights to smaller cities.

It says last year, the industry attempted 22 fare increases, of which 11 were successful. Such increases are considered successful if competitors also adopt an increase. If there's not widespread matching by other airlines, the result is usually a withdrawal of the original increase. So far this year airlines have attempted eight fare increases, four of which have been successful.

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