Manufacturing Industry
Two US airlines back down from fare increase
Airline Industry Information, March 22, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
The most recent attempt to raise air fares in the United States appears to have faltered, after Continental Airlines and Delta Air Lines rescinded the increase.
The price rise was started by Continental Airlines on Thursday night (17 March) when it raised fares by USD10 per round trip on certain US domestic flights due to the high price of fuel.
The rise was matched by Delta Air Lines, American Airlines, United Airlines, Northwest Airlines and US Airways.
The other carriers have not yet responded to the decision by Continental and Delta to revert to the previous fares, and analysts believe that the fare increase could still hold.
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