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US airlines’ wings clipped for $6
The US’s second largest air carrier raised tens of thousands of round-trip fares by $6 just a few days ago. The result: another failure at higher air fares.
American, Continental, Delta and Northwest all initially followed suit, only to rescind the latest price hike.
US Airways and Southwest did not match the increase.
United cited high fuel prices for the increased fares to cities also served by lower-cost carriers.
The UAL Corp. subsidiary’s decision to roll back prices just before the beginning of the busy holiday season was in part a reaction to US Airways’ failure to go along with it, said airline expert Terry Trippler.
A United spokesman said the cutback was related to low-fare carriers not matching the price.
“Whatever the reason, the price increase failed,” Mr Trippler told Washingtonpost.com.
“United raised fares last week only in markets that are also served by low-fare carriers. But when it became apparent….that most of them, including JetBlue, would not raise their fares, United had second thoughts,” the newspaper said.
United struck fist in the increase with about 35,000 fares, followed by American, the US’s largest carrier, said Mr Trippler. A few hours later, Delta and Continental followed suit.
“Airlines have raised fares many times in the past two years, partly to cover higher fuel costs. But such attempts generally fail to stick when not all competitors join in bumping up prices, “wrote the Associated Press,
There hare been nine airline increases attempted so far this year; two have failed.
What’s next? More of the same, of course.
Report by David Wilkening
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