Advertisement

Continental, US Airways, Delta Match American’s Hike

Share
From Bloomberg News

Delta Air Lines Inc., Continental Airlines Inc. and US Airways Group Inc. boosted fares on leisure travel 4%, matching the fare hike by AMR Corp.’s American Airlines on Thursday.

The new fares apply to most U.S. routes except those where rival Northwest Airlines Corp. has hubs--Detroit; St. Paul, Minn.; and Memphis, Tenn. Northwest, facing a possible pilot strike, spurned an effort to boost fares last week, prompting other carriers to revoke their increases.

UAL Corp.’s United Airlines, the biggest U.S. carrier, raised fares only on tickets bought seven days in advance, and didn’t exclude the Northwest hub cities from the increase.

Advertisement

The latest move by American, the second-biggest U.S. carrier, is the sixth attempt by leading airlines to increase domestic leisure fares since April. Airlines want to raise fares because of record passenger traffic in recent months and strong advance bookings.

The prices passengers pay to fly one mile “on this type of fare have not kept pace with other types of fares,” said Tim Smith, a spokesman for AMR.

Delta, Continental and US Airways matched the increase late Thursday night or early Friday.

Southwest Airlines Co., Trans World Airlines Inc. and America West Holdings Corp. did not increase fares, representatives for the carriers said.

Advertisement