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Stabroek News

United Airlines raises fares in some markets - Delta, AA follow
published: Sunday | October 29, 2006

CHICAGO, United States (Reuters):

United Airlines said on Friday it raised round-trip fares by US$6 and one-way tickets by US$3 on some routes where it faces low-cost competition.

A spokeswoman for the No. 2 U.S. airline, a unit of UAL Corp, said the carrier increased the prices on Thursday night to offset the higher cost of fuel.

U.S. airlines have implemented several fare hikes this year to combat soaring fuel prices. UAL spokeswoman Robin Urbanski said that despite a recent decline in fuel prices, fares in some markets are still too low.

The price of crude oil - directly linked to the price of jet fuel - has fallen more than 20 per cent since August, but the price remains historically high and a burden for airlines. On Friday, crude was trading at US$60.78 a barrel.

Increase Matched

AMR Corp's American Airlines matched United's increase on Friday morning, an AMR spokesman said. Bankrupt Delta Air Lines said it also has matched the increase. But Continental Airlines said it has not matched.

It remains to be seen whether the fare increases will last. Earlier this month, several airlines rescinded increases that went unmatched by a broad base of competitors, according to industry sources.

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