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Delta, the world’s largest carrier, rescinded the higher prices “to remain competitive,” said Susan Elliott, a spokeswoman.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Continental Airlines Inc. rescinded the increase for the same reason, said Julie King, a spokeswoman for the Houston-based company.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
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