United Says LAX Rent Hike Forces $10 Surcharge

United Airlines said Wednesday it was adding a $10 surcharge for passengers departing Los Angeles International Airport to offset a $10 million annual hike in terminal maintenance and operations costs passed along by the city.

The surcharge goes into effect immediately.

"Passing along this surcharge to our customers is not our preferred action, but the recent sharp increase in costs to operate at LAX has left United with no other option," said Kevin Knight, a senior vice president, in a statement from the airline's Chicago headquarters.

Los Angeles World Airports, the agency that runs LAX and other Los Angeles-owned airports, raised fees in December.

"We have a great interest in LAX developing into a world-class airport, supported by a long-term modernization plan, but we have no interest in paying higher fees without greater benefit for our customers," Knight said.

UAL Corp.'s United, which has joined several other airlines in a lawsuit contesting the cost hikes, believes the increase violates United's long-term lease agreement with Los Angeles World Airports.

(Transcript from on-going hearing.)

The airport agency said the surcharge is unfair to passengers.

United, which flew more than 4.8 million passengers out of Los Angeles last year, would generate more than $10 million with the surcharge if the level of traffic is the same this year, the agency said in a statement.

"United appears to be exploiting a justified increase in its maintenance and operation costs in order to dramatically increase profits on Los Angeles passengers," the statement said.

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