The other guy blinked: US air hikes rolled back
Good news for air passengers: The US’s first airline fare increase of the year was quickly rolled back by several major carriers.
"We can now declare the first domestic airfare hike of 2010 … a failed attempt," said Rick Seaney, CEO of travel Web site Farecompare.com.
The attempt followed four successful increases last year and 15 in 2008, according to FareCompare.
Airlines generally drop increases others don’t adopt to avoid having higher prices, said Reuters.
The increase, which was from $6 to $16 round-trip, was initiated by American Airlines and later matched by rivals, including Delta Air Lines and Continental, according to Seaney.
Seaney said Delta was the first to retreat from the hike, followed by American, Continental and American Airlines.
“The airline industry has been groping for pricing power after demand for business travel sagged during the economic downturn of 2008 and 2009,” said Reuters.
Delta, the world’s largest carrier, rescinded the higher prices “to remain competitive,” said Susan Elliott, a spokeswoman.
Tim Smith, a spokesman for Fort Worth, Texas-based American, the second biggest, said it rolled back the fares after Delta.
United, based in Chicago, also “rolled it back to keep our fares competitive,” said Robin Urbanski, a spokeswoman.
Continental Airlines Inc. rescinded the increase for the same reason, said Julie King, a spokeswoman for the Houston-based company.
By David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025