Continental, Delta Back Down on Fare Hikes

Another round of airline fare increases faltered as two carriers backed down, including Continental Airlines Inc., which had started the price hikes of $10 per round trip on many U.S. flights to offset rising fuel costs.

The fate of the hike -- it would have been the third in less than a month -- was uncertain, however. Although Delta Air Lines Inc. also backed down, several other carriers still had the higher fares in effect.

The overall direction of fares is clear -- up. Northwest Airlines Corp. has led two successful rounds of increases, bumping prices up $10 to $20 per round trip each time.