31st October 2006

Fare Increase Backdown for US Airlines

At least four US airlines dropped their plans to increase fares this week, after a fifth air carrier reversed their decision to increase air fares by less than $10.

The initial price hike had been initiated by United Airlines, who cited high fuel prices as the cause and instituted an approximate $6 increase per round trip.

Delta Air Lines, American Airlines, Continental Airlines and Northwest Airlines immediately began looking at plans for their own price hikes, according to travel expert Terry Tripper.

US airline companies have raised their fares several times over the past two years, but unless they can all agree on an increase together, market forces work to keep the fares down.

The situation has changed. See US Air Fares Up Again here.