Latest US air hike fails but prices going up
The fourth attempted fare hike of the year unraveled but prices are inevitably going up this summer.
The reason: soaring fuel prices.
"You’ll see gradual increases and then a much bigger jump in April and May when people start shopping for the summer travel season," said Rick Seaney, CEO of travel website FareCompare.com.
The latest data shows the average fare increased 9 percent between January 2011 and January 2012, while the price of jet fuel rose 18 percent over the same period, according to the Orlando Business Journal.
The most recent fare hike of the year unraveled as low-fare airlines declined to match the increase initiated by United Airlines.
United started the move when it raised domestic round-trip fares by up to $10.
Virgin, Delta, American, and US Airways matched the increase.
But Seaney said the latest increase failed primarily because it was not matched by low-fare airlines, including JetBlue Airways and Southwest Airlines, the nation’s largest carrier of domestic passengers.
A third attempted hike, initiated by Delta in January, failed when other airlines declined to match the increase.
By David Wilkening
David
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