Continental and Eastern Join in Latest Fare Hikes

Eastern Airlines and Continental Airlines, both units of Texas Air Corp., said Friday that they will raise the fares used most by business travelers by $5 to $15 each way, matching a similar move by other major carriers.

The increases, which would affect midrange fares priced between full coach and excursion, are the latest attempt in a series of actions by airlines recently to raise prices at a time when passenger traffic is at record highs.

The higher fares take effect Sept. 17.

The fare hikes were initiated Wednesday by American Airlines and quickly matched by its two largest competitors, Delta Air Lines and United Airlines.

But Texas Air, often a pricing leader with about 20% of the U.S. market, waited two days to respond.

“We thought (the increase) was warranted,” Eastern spokeswoman Paula Musto said. She noted that Eastern took the move not only to match its competitors but also to compensate for rising fuel costs.

The Eastern fare increases will apply to most of the airline’s routes.

Continental will raise its fares by $5 each way for travel between some West Coast markets, by $10 on most other flights of 1,000 miles or less and by $15 for most flights of more than 1,000 miles.

All of the latest fare increases affect “super-coach” fares, used mostly by business travelers and carrying few purchase restrictions. Such fares have no cancellation penalties and don’t require round-trip travel.