BUSINESS BRIEFS
Gas, crude oil prices hit record
Advertiser Staff and News Services
NEW YORK — Gasoline and crude oil jumped to record highs yesterday, with gas rising 3 cents to an average national price of nearly $3.65 a gallon and oil crossing $124 a barrel for the first time.
At the pump, the average price of a gallon of regular gas nationwide rose 2.7 cents to a record $3.645, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices also rose, adding 0.9 cent to match a record national average of $4.251 a gallon.
Gas prices tend to lag oil futures, and with crude rising to a record high near $124 a barrel Wednesday and likely headed higher, it's widely expected the average price of gas will soon rise as high as $4.
AMERICANS TURN TO DISCOUNT RETAILERS
NEW YORK — Caught in the maelstrom of higher gas and food prices, Americans — even more affluent ones — are seeking shelter in wholesale clubs and discount apparel chains.
Low-price operators Costco Wholesale Corp., Wal-Mart Stores Inc. and TJX Cos. reported better-than-expected sales on yesterday, while traditional apparel chains J.C. Penney Co. and Limited Brands Inc. struggled.
"The smart shopper is in full bloom," said Craig R. Johnson, president of consultancy Customer Growth Partners. "They're looking to stretch their household budgets, and if you can get decent quality merchandise, why pay full price?"
GM PAYS $200M TO HELP END STRIKE
DETROIT — General Motors Corp. has agreed to kick in up to $200 million to help bring an end to a bitter 10-week strike at parts supplier American Axle and Manufacturing Holdings Inc.
The automaker said yesterday in a government filing that the money would go for temporary payments to buffer reduced wages for the workers, as well as employee buyout and early retirement packages.
About 3,600 United Auto Workers at five American Axle factories have been on strike since Feb. 26 in a dispute over the company's quest for lower wages and benefits.
The strike has crippled GM's production of pickup trucks and sport utility vehicles and hurt its bottom line.
3 AIRLINES RAISE TICKET PRICES $20
NEW YORK — The three biggest U.S. carriers said yesterday they have again raised ticket prices, this time by $20 roundtrip, to recoup soaring fuel costs.
The increases by American Airlines, United Airlines and Delta Air Lines affect the carriers' fuel surcharges, which now total $130 roundtrip on many flights. That means passengers on some cheap flights could be paying more in fees and taxes than for the airfare itself.
Delta Air Lines Inc. initiated the increase, which applies to most domestic routes. It is the Atlanta-based carrier's second hike in just over a week. The previous increase was quickly matched by competitors.
"This is obviously a result of the current market, and fares have to reflect the cost of doing business," spokeswoman Betsy Talton said.
Representatives for AMR Corp.'s American Airlines and UAL Corp.'s United Airlines said the carriers matched the increase on most routes yesterday.
Airlines' finances have been under severe pressure as they struggle to cope with soaring energy prices.
