Originally published May 8, 2007 at 12:00 AM | Page modified May 8, 2007 at 2:00 AM
Latest airfare increases don't fly too long
Major airlines were in danger Monday of losing ground on fare increases they attempted the past week, as the carriers tried to navigate...
The Associated Press
DALLAS — Major airlines were in danger Monday of losing ground on fare increases they attempted the past week, as the carriers tried to navigate through weakening demand for air travel.
At least in some markets, United Airlines was sticking by its increase of up to $100 per round trip for tickets often bought by business travelers, and increases of up to $20 per round trip for tickets on other routes, a spokeswoman said.
But Neil Bainton, who tracks fares for FareCompare.com, said United had dropped the increase in most of the largest markets.
Other airlines were mostly declining to match the increases, putting pressure on United to retreat.
Continental Airlines started separate increases of $10 per round trip last week, but pulled back on many routes by Monday, especially where it competes with low-cost carriers.
American Airlines, the nation's largest carrier, had matched Continental's increase but also retreated on most routes.
US Airways and Northwest Airlines did the same, and Southwest Airlines never went along to start, said officials who track airfares.
Bainton, the FareCompare.com analyst, predicted the increases would all be rolled back by Monday night.
Jamie Baker, an analyst for J.P. Morgan, said the refusal of discounters such as Southwest to match even the smaller increases suggested fares might quickly fall back to last week's levels.
The sputtering attempts to raise prices come just before the summer peak travel season but also as carriers battle with slower travel growth and a larger supply of available seats.
United needed to raise fares to cover the high cost of fuel, a spokeswoman said.
A spokesman for American Airlines said the same thing.
![]()
United last week raised prices on walk-up and fully refundable tickets by $100 per round trip and bumped discounted first-class fares by $50 per round trip.
Those tickets are typically bought by business travelers.
Most other carriers declined to go along, preferring instead to test smaller increases.
U.S. carriers have raised fares about 20 times over the past two years, but strong demand for air travel kept occupancy rates high.
In the past few weeks, however, some carriers have reported softness in second-quarter bookings, which is likely to make it harder to raise prices.
Airlines also have continued to offer discounts and fare sales, even as they pushed published fares higher.
Baker, the analyst, said consumers are paying only 1 to 2 percent more on average than a year ago for U.S. flights because of the large number of tickets sold through secondary sources such as priceline.com and hotwire.com
United is particularly aggressive in selling through such sites and in offering discounts in contrast to its "higher-end approach" on some tickets, Baker wrote to clients.
UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case
UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip
UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award
UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall
NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook

Entertainment | Top Video | World | Offbeat Video | Sci-Tech
nwautos
Are you one of the many hanging onto their old beater? Or do you just love that new-car smell? When did you last purchase a vehicle? Take our poll or....
Post a comment
- Lakewood cop accused of embezzling $150K meant for slain officers' families
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Agency set to investigate handling of 911 call about Josh Powell
- Quick decisions: How Washington hired its new football staff
- Historic day for gay marriage as another fight looms
- Justin Wilcox's versatile defensive style is the right fit for Huskies | Jerry Brewer
- It's Terrence Time: Enigmatic Ross leads Huskies
- Social worker recounts minutes before Powell fire
- $25B settlement reached over foreclosure abuses
- Club promoter convicted in brutal 2010 murder of Des Moines prostitute
- Gay-marriage bill passes House, awaits Gregoire's signature
434 - Historic day for gay marriage as another fight looming
346 - Sheriff's office unhappy with 911 dispatcher in caseworker's call
282 - 3 big health insurers stockpile $2.4 billion as rates keep rising
235 - Source: NY, California to sign mortgage settlement
206 - Oregon live game thread
152 - Pac-12 picks ... including the UW game
140 - Lakewood cop accused of taking donations for slain officers' families
114 - Department of Justice owes the Seattle Police Department an apology
87 - Thursday morning links --- and a video!!!
72
- State Medicaid program to stop paying for unneeded ER visits
- 3 big health insurers stockpile $2.4 billion as rates keep rising
- Here it is: The secret to stir-fried chicken | Taste
- Local aerospace suppliers say they feel squeezed by Boeing
- Dicks channeled federal money to Puget Sound project his son ran
- 'Gauguin and Polynesia': dazzling mix-and-match | Art review
- Buttoned Up: Nine immutable laws of time management
- Happy Hour: French-accented charm at Gainsbourg
- One man's audacious pursuit of sailing history
- Gay-marriage bill passes House, awaits Gregoire's signature







