AMR Corp.’s American Airlines, the world’s largest carrier, and Delta Air Lines Inc. raised fares $5 each way on most U.S. flights to meet higher jet-fuel prices.
Delta initiated the increase last night, and American matched it today. It’s the fourth time this year that U.S. airlines have tried to impose a widespread fare boost. Previous efforts were pulled back when competitors refused to go along.
AMR and other U.S. carriers have said first-quarter results will be been hurt by higher fuel costs, winter storms that snarled travel, and slower revenue growth. The carriers include JetBlue Airways Corp., US Airways Group Inc., Alaska Air Group Inc.
and Frontier Airlines Holdings Inc.
The $5 increase has “a slightly greater than 50 percent probability of success,” given the revenue pressure on the industry, Jamie Baker, a JPMorgan Chase & Co. analyst, said in a report today.
UAL Corp.’s United Airlines, Northwest Airlines Corp. and US Airways are studying whether to match the change, spokesmen said.
Airlines generally drop fare increases not matched by rivals, in order to remain competitive. Continental Airlines Inc.
declined to comment.
“We continue to face cost pressures, particularly fuel,” Betsy Talton, a Delta spokeswoman, said in an interview today.
Fuel Prices Average jet fuel prices for immediate delivery in New York harbor have risen 7.6 percent since the start of this year.
The average price so far this year is 3.8 percent below the same period last year.
Major U.S. carriers raised fares at least 10 times last year.
American raised round-trip fares as much as $40 on Dec. 21 in most U.S. markets.
Southwest Airlines Co. raised round-trip fares $20 on Feb. 9 in limited markets, citing higher fuel costs. The Southwest increase, which was matched by other carriers in those markets, applied only to tickets purchased within seven days of travel.
