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American to Increase Fares on 800 Routes

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From Times Wire Services

American Airlines said late Tuesday that it plans to raise fares in about 800 domestic markets next month, but refused to adopt a 5% across-the-board hike and other moves set by its competitors.

The nation’s biggest airline said it will return fares on the 800 routes to the levels it set in April when it announced its Value Pricing plan, a program designed to simplify the Byzantine world of air fares. But the fares will include an additional 4.4% surcharge for higher fuel costs.

American had been forced to abandon many of its Value Pricing fares this summer in the face of price-cutting competition from other airlines.

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Under the new fares, a New York-to-San Francisco round-trip ticket bought 14 days in advance will rise from $420 to $490.

A round-trip ticket from Chicago to Los Angeles, now $300, will be $400.

American said the 800 markets, out of a total of 16,000, are now priced below its Value Pricing structure.

But American said it is opposed to four moves by its competitors, saying they would confuse passengers.

Those initiatives include a 5% across-the-board increase, a doubling of the current $25 administrative service charge, a voucher plan for refunds affected by recent fare fluctuations and a 21-day advance purchase requirement.

The increase and the fees are to take effect Sept. 1.

Several airlines plan to go along with the general fare increase, first announced by Delta.

But American said such an increase “would unfairly burden the business traveler.”

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