Northwest Fares to Rise 5.8% on Oct. 31; Higher Costs Cited

The third-round bell in the U.S. airline battle clanged loudly Tuesday as Northwest Airlines boosted fares another 5.8% beginning Oct. 31.

Continental Airlines Holdings Inc.’s Eastern Airlines and Continental Airlines units last week presaged new hikes by proposing to boost fares on business trips 8% starting Oct. 23.

Industry analysts say the hikes will undoubtedly be matched by other U.S. carriers. “I think others will (follow),” said First Boston Corp. analyst Paul Karos. “They have to.”

The price of flying on Northwest, the nation’s fourth-largest airline has now risen 15.3% since early August.

Minneapolis-based Northwest, a unit of NWA Inc., said the increase is meant to further combat higher operating expenses.

Neil Monroe, a spokesman for Delta Air Lines, said while it had no specific plans yet to match the rise, the price of jet fuel has jumped from 57 cents a gallon at the end of July to $1.20 now. UAL Corp., United Airlines’ parent, also said it was studying the move.