Air fare hikes falter, but demand remains strong
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Major U.S. airlines on Tuesday partially withdrew last week's flurry of fare increases, but one analyst said the fare hikes have been uncommonly successful and suggest robust travel demand this fall.
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Two of the largest U.S. airlines raised fares on Friday, aiming to take advantage of strong travel demand to boost profitability and offset the price of jet fuel, which despite recent declines, remains historically high.
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FORT WORTH, Texas - At least three major competitors followed American Airlines&#39; lead and raised some domestic fares $5 one-way and $10 round-trip this week, but it remained unclear Friday if the increases would stick.
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NEW YORK -- As larger US airlines suffer growing losses, low-cost carriers, previously thought to be invincible, are not far behind, industry experts say, due to soaring jet fuel prices, low air fares, and more competition.
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Airports operator BAA announced a 3.0-percent rise in passenger numbers during November against the same period last year, although growth had slowed from recent months.
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A fare hike that raises tickets by &#36;5 each way announced by American Airlines earlier this week to offset record high jet fuel appears to be sticking among other U.S. airlines, an industry source said on Friday.
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Travelers will have to pay up to $10 more for a roundtrip ticket on UAL Corp's  United Airlines and $14 more on Continental Airlines , as the airlines seek to offset the rising cost of jet fuel.
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United and Delta airlines on Friday matched an airfare increase that American Airlines launched, but it wasn&#39;t clear whether other competitors would follow.
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If you've flown this past spring and summer, you've probably noticed fuller flights. Hate to tell you this, but with Thanksgiving and Christmas approaching, you can expect more of the same.
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HEAVY suitcases aren&#39;t the only things weighing down aeroplanes and requiring them to burn more fuel, pushing up the cost of flights.
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BIG FARE INCREASES After United Airlines raised domestic fares across the board by $50 a round trip on Friday, most major carriers quickly followed with similar increases on many routes, according to FareCompare.com. The reason was sharply higher fuel costs. Delta Air Lines raised its round-trip fares by $50 immediately after Unitedâs move. American Airlines also posted $50 round-trip increases on 55 percent of its route system, though "conspicuously absent" are increases on its routes that overlap with many Southwest Airlines routes, said Rick Seaney, the chief executive of FareCompare.com. Then on Monday, Northwest Airlines also joined in the $50 increase on most of its routes. Continental Airlines, which initially raised fares by $50 on some routes on Friday, withdrew the increases Monday morning, but Mr. Seaney said it was unclear whether Continental might reverse course again soon. This was the second broad fare increase in 2008, and the 10th since last Labor Day, Mr. Seaney said, adding: "It seems the legacy airlines, United in particular, are forgoing the nickel-and-dime strategy of increases every few weeks and are going for the whole enchilada at one time.".
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New orders for long-lasting U.S.-made goods rose 0.6 percent last month despite a sharp plunge in demand for new aircraft, according to a government report that reflected underlying economic strength.
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American Airlines, Delta and Southwest all reported profits for the second quarter, on strong passenger loads, but jet fuel costs limited the gains.
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PARIS -- Airlines the world over are raising fares to offset rising oil prices that threaten to choke off a gradual recovery in air travel and pile more woes on struggling carriers.
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Orders for long-lasting U.S. durable goods slipped unexpectedly in August as civilian aircraft demand plunged, but beat forecasts once transportation was stripped out, government data showed on Friday.
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Travel: Â· Passengers could pay Â£50 more, says watchdog Â· Airline aims to price bags out of aircraft holds
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Global air passenger traffic continued a steady rise in the first nine months of this year, rising 17.7 percent from the same period in 2003, the International Air Transport Association said Wednesday.