Carriers pull back recent fare hikes
From Times Wire Services
U.S. airlines rolled back much of their recent systemwide fare increases in a sign that carriers are losing pricing power amid softening demand.
Continental Airlines sparked a broad fare increase Friday by raising prices $5 each way on all continental U.S. flights. The move was matched by most major airlines, but not by budget carriers such as Southwest Airlines Co.
American Airlines, a unit of AMR Corp., said it partially rolled back the fare hike.
Northwest Airlines Corp. and US Airways Group Inc. pulled back their hike entirely, while UAL Corp.’s United Airlines, Delta Air Lines Inc., and Continental scaled back their increases, according to fare analyst Neil Bainton at Farecompare.com.
