American and Delta Raise Air Fares 3%

AMR Corp.’s American Airlines, the second-largest U.S. carrier, and Delta Air Lines Inc. boosted leisure and business fares 3% as oil prices rose to their highest level since the Persian Gulf War. American raised fares late Monday on those tickets and Delta immediately matched the move, said Terry Trippler, who monitors fares for his 1Travel.com Web site. The increase will mark the industry’s fourth fare boost this year if other airlines join. Northwest Airlines Corp., the No. 4 U.S. airline and a frequent holdout, has no plans to match, said spokesman Doug Killian. Continental Airlines Inc., the fifth-largest U.S. carrier, is “studying” a fare increase, said spokeswoman Sarah Anthony. Although it’s illegal for airlines to discuss prices with rivals, one airline typically raises fares and watches to see if others follow. If competitors hold fares steady, the airline will typically rescind the increase. The last industrywide fare increase was in June. American and Delta raised their Boston-Los Angeles round-trip ticket price purchased 21 days in advance to $762 from $740.