Airfare hikes fall apart — again

Sunday, 25 Jan, 2007 0

The major carriers rescinded a briefly successful $5 one-way fare increase.

But industry observers say that’s hardly the end of it.

“We would expect another, largely similar industry effort within coming weeks,” said JP Morgan airline analyst Jamie Baker in a research note.

United started the move by raising domestic fares by $5 “in nonstop and connecting markets exceeding 1,000 miles, excluding Southwest-competitive markets,” he said in the note.

The hike fell apart after American and Delta moved to broaden the scope of the effort.

This year’s first effort among legacy carriers to boost fares came earlier this month, with a $5 one-way increase, also led by United. The increase followed 10 such increases in 2006.

Report by David Wilkening



 

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