U.S. Airlines Raise Fares in Domestic Markets

Several major U.S. airlines have raised fares in some markets by $5 each way, after two unsuccessful efforts to increase prices in recent weeks.

American Airlines, Continental Airlines and Delta Air Lines each said on Friday that they raised fares in domestic markets not served by low-cost carriers.

The increases affect walk-up and advance purchase tickets, according to FareCompare, an airfare tracking company.

If the price increase holds, it would mark the first broad fare increase since August when tighter security measures were implemented following a foiled plot to blow up planes.

Attempts at broad-based fare increases have failed in recent weeks, with companies rescinding increases twice in targeted markets after low-cost carriers and some traditional airlines did not match the increases.

But unlike recent attempts to lift fares, the latest effort, which affects more markets, is expected to hold because it is not dependent on low-cost carriers playing along.

United Airlines and Northwest Airlines said they are studying the fare increase and had not matched it.

UAL added that it increased fares by $25 to $50 on Thursday for one-way trips in about 50 markets where the airline faces low-fare competition. Those fare increases apply only to last-minute walk-up purchases.

Airlines have used fare increases to offset the high price of oil. The latest efforts to raise ticket prices come after jet fuel prices have retreated from historical highs this summer.