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Airlines drop fare boost
The US’s major airlines attempts to raise fares to defray higher fuel costs came to a sputtering halt.
The US’s fifth largest carrier, Continental Airlines, initially set increases of as much as $40. The Fort-Worth-based American Airlines matched the increase on some fares and routes. So did Delta and Northwest.
But the airlines canceled the increases.
The airline industry faces a $3 billion loss because of higher fuel prices, says the International Transport Association.
Most carriers are headed for a fourth straight year of losses because jet fuel prices have risen about 50% from a year ago, according to Bloomberg.com.
Airline analysts said the fare increase failed because not enough airlines beside Continental matched the higher costs on similar routes. Broad fare increases only last when most airlines match it, analysts said.
Report by David Wilkening
David
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