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VOL. 126 | NO. 216 | Friday, November 4, 2011

US Airways, Delta Hike Fares by Up to $10 Per Round Trip

AP

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DALLAS (AP) – US Airways and Delta Air Lines Inc. are raising fares on many U.S. flights by up to $10 per round trip, and other airlines are tinkering with prices too.

United and Continental raised the minimum prices they'll charge on sales and certain other fares, a spokesman said Thursday. The US Airways increase appeared to target business travelers.

The moves are the latest attempt by airlines to boost revenue during a normally slow time of year for travel. They succeeded in raising prices two weeks ago, but another fare hike last week fizzled and was eventually canceled.

US Airways Group Inc. confirmed Thursday that overnight it had raised fares by $4 to $10 per round trip. American said it was considering whether to match the increase. Southwest and JetBlue said they had not matched the increases.

Jamie Baker, an analyst for J.P. Morgan, said the US Airways price increases were on tickets favored by business travelers, including first-class and economy fares eligible for instant upgrade.

Airline officials have said that demand among corporate travelers has been holding up better than leisure travel because vacationers are more sensitive to small increases in price.

Airlines have been able to boost prices partly by limiting the number of flights and available seats. U.S. airlines have tried about 20 fare hikes this year, with half of them sticking. The others were rolled back, usually because some airlines – typically a low-cost carrier such as Southwest or JetBlue – declined to go along.

Higher fares helped most airlines earn money in the third quarter. Delta and United Continental Holdings Inc. earned more than $500 million each in the third quarter, although American Airlines parent AMR Corp. and Southwest Airlines Co. lost money.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 51 328 20,960
MORTGAGES 58 387 24,132
FORECLOSURE NOTICES 6 54 3,101
BUILDING PERMITS 170 842 43,435
BANKRUPTCIES 50 288 13,468
BUSINESS LICENSES 34 90 6,712
UTILITY CONNECTIONS 16 110 7,899
MARRIAGE LICENSES 32 91 4,734