Two Airlines Increase Fares by $10 to $30

Two of the nation’s largest airlines said today they are raising regular fares in at least 80 markets by as much as $30 a ticket because of increased demand for seats.

United Air Lines and American Airlines said discount fares will not be affected by the increases, which take effect Thursday.

The move came amid increasing consolidation in the airline industry in which large carriers have been buying smaller competitors in an attempt to dominate their markets.

$10 and $20 Hikes

Heavy discounting of seats over the last nine months caused widespread losses among many airlines, but passenger traffic increased sharply during the summer and the growth in capacity slowed. Analysts said this put airlines in a good position to raise fares.

United spokesman Charles Novak said regular one-way fares will rise by $10 for trips of less than 1,000 miles and $20 for trips of more than 1,000 miles on flights originating from Chicago, United’s major hub. First-class fares, calculated at 150% of regular fares, will rise correspondingly by $15 and $30.

American spokesman Larry Gottardi said it will match United’s increases in competing flights from Chicago and from Dallas, American’s major hub.

Business Travelers

Novak said he knew that Trans World Airlines is planning similar increases. Officials at TWA did not immediately return phone calls seeking comment.

The increases are primarily aimed at business travelers, Novak said, and will affect 80 to 90 routes. Discount fares, which carry advance-booking and cancellation penalty restrictions, will not be raised, he said.

“Basically, the reasons behind the increases are that business traffic looks good for the fall and, secondly, the product has been underpriced,” he said. “We don’t think these modest fare increases will dampen any traffic.”