PSA, AirCal Boost Some L.A.-San Francisco Fares

The two major air carriers on the hyper-competitive Los Angeles-to-San Francisco corridor cautiously raised some of their fares Wednesday in reaction to a $10 dollar fare hike announced Tuesday by United Airlines.

PSA, the San Diego-based carrier that controls about 50% of the corridor’s traffic, said it is holding its unrestricted Los Angeles-to-San Francisco one-way fare at $109, but will raise some of its discounted but restricted fares.

Discounted one-way fares between the two cities now range as low as $39. But the number of available seats often is severely limited, and they require advance booking.

PSA said it plans to raise its 30-day advance-booking fare by $10, to $59 one way, effective Oct. 29, and its 14-day, one-way advance fare to $69, from $59. The airline also is boosting its weekend one-way rate to $59, from $49.

Newport Beach-based AirCal, the No. 2 carrier on the corridor with an estimated 30% of the market, likewise held its unrestricted fare steady at $109. But it plans to match PSA’s increase in its 14-day advance-booking fare while leaving the rest of its rates intact.

AirCal spokesman Bill Bell said the airline will consider raising other rates later this year.

PSA and AirCal rates apply to departures from Los Angeles International Airport, Ontario International, Burbank and Orange County’s John Wayne Airport to San Francisco and Oakland.

United’s unrestricted one-way rates from Los Angeles to San Francisco will jump $10 to $119. The increase is part of an effort by the nation’s largest passenger air carrier to lift rates systemwide. Several major airlines, including American, Eastern and TWA, have followed United’s lead and announced increases on many routes.

One reason for the cautious response on the West Coast is that the fares there already are at a historic peak, and the leading airlines in the market have managed so far to avoid the ritual fare war that typically ensues each fall. Fares uniformly jumped $10 in the early summer and, until yesterday’s announcements, had not been scaled back following the end of the heavy tourist season, said Bill Hastings, spokesman for PSA.

However, the traditionally slack first quarter could bring a new round of discounting. “It only takes one carrier to cut fares,” Hastings said.