DELTA RAISING FEES EFFECTIVE TODAY. Delta Air Lines is imposing new or higher fees on a host of travelers, including frequent flyers, passengers traveling with pets and people booking their tickets over the phone. The fee changes, which go into effect today, come as Delta and its competitors try to boost revenue to offset record fuel prices. One of the changes most likely to rankle frequent flyers is a new $25 "handling charge" for any Delta award tickets booked through a Delta representative that includes a segment on another airline. The "handling charge" would be on top of the fee Delta charges for booking travel over the telephone, which is increasing today to $25 from $20. Delta also said carrying a pet in the cabin will cost $100 instead of $75, starting today. The oversize bag fee will be $150 instead of $100. The unaccompanied minor fee will be $100 on all flights instead of $50 for nonstop flights and $100 for connecting flights. (AP; www.OrlandoSentinel.com/Business; www,AtlantaJournal-Constitution.com/Business; Pages 1B, USA Today; 5C, Miami Herald)

Northwest Airlines (NYSE: NWA) today announced changes to its luggage policies for coach class customers traveling within North America.
For coach class travel on or after May 5, 2008, Northwest Airlines is matching several other U.S. network carriers and implementing a $25 charge for the customer's second checked bag. The fee is applied each way. Coach class customers may continue to check one piece of luggage free of charge.
Other changes include an increase from $80 to $100 for three or more checked bags, and an increase from $25 to $50 for overweight bags greater than 50 pounds. These policies also apply to Northwest Airlink customers flying on Mesaba, Pinnacle or Compass Airlines. Northwest Airlines' Silver, Gold and Platinum WorldPerks(R) elite customers, SkyTeam elite customers and passengers booked in full fare classes (Y or B) may still check two bags free of charge. Customers booked in first class can continue to check up to three bags free of charge. Starting Saturday, March 29, customers booking online at www.nwa.com will be notified of the policy change on their trip summary. Customers booking through the reservations center will be notified of the change before the conclusion of the call and on their trip summary. EAGAN, Minn., Mar 28, 2008 (BUSINESS WIRE)

10% OF PILOTS FLY ARMED. More than one in 10 of the nation's airline pilots are cleared to carry a handgun while flying, and the number will continue to grow, according to the Transportation Security Administration. The TSA, which has declined to disclose the number of armed pilots, revealed in a recent budget document that 10.8% of airline crew members were authorized to carry guns. Aviation experts were surprised and alarmed that so many pilots are toting guns in the sky. "That's a scary number," said Joseph Guteinz, a former Transportation Department special agent and aviation attorney in Houston. But Capt. Bob Hesselbein, head of security for the Air Line Pilots Association, said the number of armed pilots is "a tremendous deterrent" to hijacking. (Page 1A, USA Today)

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CARNIVAL WILL REFUND $40M FOR FUEL SURCHARGE. Carnival Corp. has agreed to voluntarily refund $40 million to cruise passengers who were forced to pay extra fuel charges even after they had booked their trips, part of a deal the company announced Monday to settle an investigation by Florida Attorney General Bill McCollum. The refunds will cover more than 1.1 million bookings. "I think Carnival's being a good corporate citizen, and I'm pleased with it," McCollum said. Under the agreement, Carnival, the world's largest cruise operator, can continue to levy its fuel surcharge--a $5-a-day fee, up to $70 a passenger or $140 per cabin. But the company must clearly disclose the fee to customers before they buy a trip and must display the amount "directly above, beneath or next to the cruise-fare price." The agreement is modeled after a deal McCollum's office struck last month with Royal Caribbean Cruises Ltd., the world's No. 2 cruise operator.

The latest agreement covers six Carnival brands, including Carnival Cruise Lines, Holland America Line and Princess Cruises. RCCL announced March 10 that it would refund $21 million worth of retroactive surcharges to settle its part of the investigation. (www.Orlando Sentinel.com/Business; Pages 3C, Miami Herald; 1D, Fort Lauderdale Sun-Sentinel; Special to TA)

GAS PRICES SET NEW RECORD. The average price of gasoline slipped into record territory Monday after two weeks of respite. The rise provides a high springboard from which prices could vault close to $4 a gallon as Memorial Day nears. In its most recent forecast, March 11, the U.S. Energy Information Administration predicted "a significant possibility that prices...will cross the $4-per-gallon threshold" briefly in some regions this spring. EIA's weekly survey said the U.S. average for regular gasoline was a record $3.29 per gallon Monday. That's up 3.1 cents from a week ago. (Page 2B, USA Today)