US airlines abandon fare increase
AFP
|
Tue, Jan 26 2010
Major carriers struggle to bolster fares amid depleted travel demand.
* U.S. carriers roll back fares after attempted increase
* Delta pulls out first, fare expert said
* Airline index near flat
CHICAGO - The first broad-based U.S. airline fare increase of 2010 has been rolled back by several major carriers as they struggle to bolster fares amid depleted travel demand, a top fare expect said on Monday.
The increase, which was from US$6 to US$16 round-trip, was initiated last week by American Airlines and later matched by rivals, including Delta Air Lines and Continental Airlines, said Farecompare Chief Executive Rick Seaney.
The airline industry has been groping for pricing power after demand for business travel sagged during the economic downturn of 2008 and 2009.
Seaney said Delta was the first to retreat from the hike, followed by American, Continental and American Airlines.
(Reporting by Kyle Peterson, editing by Matthew Lewis)
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