Several US airlines, including Continental Airlines and Delta Air Lines Inc, raised fares in some markets by $5 each way, the third such effort in recent weeks. Delta raised fares overnight in domestic markets not served by low-cost carriers, spokeswoman Betsy Talton said.
Continental said it had matched the increase. And so did AMR Corp's American Airlines, according to FareCompare, an airfare tracking company. Attempts at broad-based fare increases have been unsuccessful in recent weeks, with companies rescinding hikes twice after low-cost carriers and some traditional airlines failed to match the increases. But unlike recent attempts to increase fares, the latest effort is expected to hold, because it is not dependent on low-cost carriers playing along.
"Discounters are incapable of acting as spoilers," J.P. Morgan analyst Jamie Baker said in a note. "We ascribe a high probability of success to this increase." UAL Corp's United Airlines said it is studying the fare increase and had not matched it.
But it added that it increased fares by $25 to $50 on Thursday for one-way trips in about 50 markets, where the airline faces low-fare competition. Those fare hikes apply only to last-minute walk-up purchases. Representatives from other major airlines were not immediately available to comment.
Airlines have used fare increases to offset the rising price of oil. The latest efforts to raise ticket prices come after jet fuel prices have retreated from historical highs this summer.
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