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Aug22
The Big 3 Roll Back Fare Increase
Rob Willers August 22, 2006
Know More:
It could have been harder for passengers to swallow another fare increase.  Even airlines are worried that another fare increase at the time when passenger traffic is slower and the recent London Bomb scare combined with a fare increase might turn even more passengers off flying. 

The three big airlines, American Airlines, Delta Air Lines, and United Airlines all rolled back their $10 fare increase the other day.  Rivals airlines did not match their fare increases. 

_39838267_airline203bodyap.jpgUS airlines have succeeded with 21 broad fare increases since 2005 and failed 17 times, said Jamie Baker, a JPMorgan Securities analyst, in a note yesterday. They have tried to raise prices this year to help pay higher costs for jet fuel. The latest attempt was for first-class seats and tickets bought within seven days of a flight's departure in all US markets.

The parent company of American Airlines, AMR Corp. (AMR) the world's largest airline, matched United's increase Friday and rescinded it Saturday because ``we can't afford to be out of line with others," said Tim Wagner, a spokesman for the Fort Worth, Texas-based company.

The Boston Globe

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