Delta Stands Alone in Keeping Fare Hike

Delta Air Lines Inc. stood by a 4% increase on its domestic leisure fares even as major competitors backed away from similar hikes. Delta, the nation’s third-largest airline, led an industry increase Thursday. AMR Corp.’s American Airlines followed Delta, but then dropped the fare boost after US Airways Group, UAL Corp.’s United Airlines and Continental Airlines Inc. withdrew theirs. Analysts and industry experts did not expect the fare hike to stick unless it was backed by all major carriers, including Northwest Airlines Corp. Northwest Airlines, which has been in contract negotiations with its pilots for two years, is trying to retain passengers in light of a possible strike by its pilots if a new labor contract is not reached by Aug. 29. Northwest Airlines’ refusal to match fare hikes by rivals has blocked five attempted fare increases in the last four months, one industry analyst said.