Travel Wise And Cool

American, Delta And Other Airlines Are Raising Fares

Major airlines are certainly gaining pricing powers. If it is any indication, I was recently downgraded twice to economy class because Northwest oversold business class tickets.

American, the nation's largest carrier, raised fares Thursday night on most of its routes except to and from Dallas, where it is locked in a fare war with Southwest Airlines Co. Delta raised fares broadly except where it competes with Southwest and other low-cost airlines.

Continental Airlines Inc. and US Airways Group Inc. both said Friday that they would match the higher fares. United Airlines was still considering the issue, but it raised other fares by up to $50 one-way; Northwest Airlines Corp. said late Friday it had matched the raise.

The leading low-cost carriers, Southwest and JetBlue Airways Corp., said Friday they had not raised prices.

At the same time, American cut fares to and from the Dallas area to compete with a fare sale announced Wednesday by Southwest.

If Thursday night's increase sticks, it would be the 22nd broad fare increase by U.S. airlines in the past two years, said Jamie Baker, an analyst with J.P. Morgan.

Low-cost carriers have balked at some fare increases, occasionally causing the older traditional airlines such as American and Delta to rescind increases. But this time, most of the increases are on routes not flown by the discount carriers, meaning they can't play spoiler, Baker said.

As a result, Baker gave the latest fare boost "a high probability of success."