Delta, American, United raise air fares
DALLAS (AP) - Delta Air Lines Inc. raised domestic air fares by $5 each way late Thursday, and American Airlines, the nation's largest carrier, matched the increase on Friday. No. 2 carrier United Airlines also matched Delta's increase, United spokesman Jeff Kovick said late Friday.
Two smaller carriers, Alaska Air Group Inc. and Midwest Airlines, matched the Delta increase, according to Neil Bainton of FareCompare.
Northwest Airlines Corp., Continental Airlines Inc. and US Airways Group Inc. remained on the sidelines at midday Friday. A spokesman for Southwest Airlines Co. said the Dallas-based carrier had no plans to raise fares immediately.
It marked the third attempt at a broad-based fare increase so far in 2007. One of the previous two succeeded.
Fare increases are often tried late in the week, and they either take hold or fall apart over the weekend as other carriers adjust their prices. Airlines can raise fares one day and roll them back the next if rivals don't go along.
Jamie Baker, an airline analyst for JPMorgan, predicted that all the network carriers would match the increase over the weekend.
Strong demand for travel - U.S. airlines have been reporting record levels of occupancy aboard their planes - has made it easier for the carriers to raise fares.
Two smaller carriers, Alaska Air Group Inc. and Midwest Airlines, matched the Delta increase, according to Neil Bainton of FareCompare.
Northwest Airlines Corp., Continental Airlines Inc. and US Airways Group Inc. remained on the sidelines at midday Friday. A spokesman for Southwest Airlines Co. said the Dallas-based carrier had no plans to raise fares immediately.
It marked the third attempt at a broad-based fare increase so far in 2007. One of the previous two succeeded.
Fare increases are often tried late in the week, and they either take hold or fall apart over the weekend as other carriers adjust their prices. Airlines can raise fares one day and roll them back the next if rivals don't go along.
Jamie Baker, an airline analyst for JPMorgan, predicted that all the network carriers would match the increase over the weekend.
Strong demand for travel - U.S. airlines have been reporting record levels of occupancy aboard their planes - has made it easier for the carriers to raise fares.