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Major Carriers Again Delay Air Fare Hikes

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From Associated Press

Major airlines Thursday delayed plans to hike fares between $10 and $40 this weekend, raising the possibility that the increases may be abandoned.

American Airlines, the nation’s largest carrier, said it still planned to raise fares Sept. 11, but spokesman Marty Heires said the airline will reconsider the increase after the Labor Day holiday.

Delta Air Lines and Northwest Airlines were still reviewing Thursday night whether to delay the increase beyond Saturday. A Delta spokeswoman, Jackie Pate, said the carrier planned to remain competitive, but no decision had been made on the fares.

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United Airlines said it will delay its increase, which was estimated at between $10 and $30, until Thursday, Sept. 10. USAir said it will also put off its planned price hike.

The airlines had appeared to be digging out of a summer of fare cuts that led to huge losses, and moving toward higher fares. But heavy competition in the industry has so far prevented fare increases from taking effect, despite several announcements of plans to do so.

Previously announced increases that were never implemented would have pushed fares as much as 33% higher. They didn’t hold up because one airline or another refused to go along.

Although fares haven’t risen, discounts that went as deep as 50% this summer have ended.

On Tuesday, 30% discounts on fall domestic travel expired and a second round of price cuts, which started when Northwest Airlines issued coupons for $35 to $50 off, is due to expire Saturday.

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