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United’s bid for fare hike fails
United Airlines, which took the lead in the first air fare hike of the new year, has failed in its bid to raise ticket prices by $2 to $5 each way throughout the system.
The airline announced the increase last Thursday and was quickly followed by partner Air Canada and Delta but the bid crashed when Southwest Airlines, the lead player in fare increases, refused to follow suit. Delta subsequetly backed off the increase. United then backed down on the system-wide hike but kept a $10 fare increase one way on flights to Hawaii and Alaska.
But agents and travelers shouldn’t breathe a sigh of relief just yet.
Industry analysts predict a steady inching up of fares in the first quarter of this year. Airline bids for fare increases sometimes fail initially but are taken up by other airlines soon after the first or second failed try.
Gretchen Kelly
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