United Airlines (UAUA) raised business fares by $50 if purchased in advance and raised walk up business class prices by $100 last week. The airline is citing higher fuel costs but I imagine it has something to do with the company's first quarter loss more than fuel costs.
This was the largest business class fare increase since 2000 for United Airlines.
Routes less than 1,500 miles got a $10 bump while those over 1,500 miles got a $20 bump. American and Northwest Airlines are both thinking about the increase, but Continental, Delta, and JetBlue have said they will not match.
I personally believe this is just another way to raise money for the company after a disappointing first quarter for them. They were one of only a few of the major carriers to not turn a profit in the first quarter. There should not be any losses for United. The company spent years in bankruptcy protection to fix this problem. No exuses for this.
And what ever happened to the $5 increases? Now the industry is pushing $20, $50, $100 increases?
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