U.S. Carriers Rescind Fare Increases

Continental Airlines Inc., Delta Air Lines Inc., Trans World Airlines Inc., UAL Corp.’s United Airlines, US Airways Group Inc. and AMR Corp.’s American Airlines rescinded increases in business and leisure fares after Northwest Airlines Corp. declined to follow suit. It marked the ninth time this year that major U.S. airlines have tried and failed to raise prices. Most earlier attempts were also stopped when Northwest, hurt by labor trouble, decided not to cut fares. The other six airlines had raised fares last week hoping to take advantage of strong travel demand in the U.S. One reason the rate boost didn’t stick might have been the government lawsuit filed Friday to block Northwest’s bid for a controlling stake in Continental, said Tom Parsons, editor of Best Fares magazine. Northwest might have been reluctant because it didn’t want to appear to be moving with Continental on fares, he said. Analysts had been skeptical that the airlines would stick with the increase, citing concern that an economic slowdown could weaken travel demand.