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Airline fare increases sputter to stop
Saturday, 24 Aug, 2006
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With both United Airlines and American Airlines backing away from fare increases, price rises have come to an end, at least for now, concludes Reuters.
“With air travelers frustrated by tighter security measures…and the industry heading into a seasonally-weak travel season, there may be no room for more price increases,” the news service said, quoting analysts.
United Airlines last week raised business fares by US$5 and US$10 for round trips, an increase briefly matched by American and Delta. Other airlines, however, did not follow.
The airlines earlier this week backed off the increases, aimed mainly at business travelers. No reasons were offered.
Report by David Wilkening
David
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