Airlines Follow United Continental Fare Hike

Posted Mar 23rd 2011 04:30 PM

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United Continental

The major U.S. airlines are on the verge of raising fares for the seventh time this year, following a $10 round-trip price increase by United Continental Holdings Inc. and a rival carrier's move to recalibrate pricing.

After the parent company of United and Continental airlines attempted to raise fares on Monday, Delta Air Lines introduced a staggered series of fare hikes ranging from $6 to $14 round-trip, depending on the length of the flight, according to FareCompare.com

By Tuesday evening, Delta pulled that fare increase, but American jumped in by matching the United Continental fare hike.

FareCompare.com Chief Executive Rick Seaney on Tuesday said he expected Delta to come back with a $10 match, followed by US Airways. And Delta and US Airways indeed matched the $10 hike shortly after noon today.

If it holds this would be the seventh successful hike in eight attempts by the major carriers, with more expected.

"It's likely legacy carriers will continue to probe on a regular basis with hike attempts," said Seaney, "tracking the trends in oil prices – testing both travelers' wallets and their low-cost cousins appetite to lift base prices."

Earlier this month, American filed to raise fares on domestic travel, only to pull the fare increase after none of its main rivals matched.

The major carriers have repeatedly raised fares this year in response to higher oil prices, which have escalated beyond $100 a barrel since the Libyan uprising progressed into a full-fledged war.

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Bruce

Will someone please explain to me how this mess of price increases and then pull-backs if the increase is not matched by competitors is NOT price fixing? In ANY other industry, these kinds of shenanigans would be "trust-busted" so fast your head would spin! Why are the airlines allowed to get away with this B.S.???

March 24 2011 at 8:22 PM Report abuse rate up rate down Reply
John

Bob Six, founder of Continental, is spinning in his grave. United, in the Continental family, used to be a dirty word!!

March 24 2011 at 7:37 PM Report abuse rate up rate down Reply
annamarie

I LOVE TO FLY,BUT WITH THEM INCREASING PRICES ALL THE TIME, I WILL DRIVE INSTEAD OF FLYING. ALSO IF I DO CHOOSE TO FLY, IT WILL BE ON SOUTHWEST. THEY ARE ALOT CHEAPER AND IT DOES NOT COST YOU AN ARM AND A LEG!!! ENOUHJ SAID!

March 24 2011 at 7:19 PM Report abuse rate up rate down Reply
Danny

I retired last year so the airlines are no longer sucking the blood out of me. I'll drive or take Amtrak. NO WORRIES!!!

March 24 2011 at 6:06 PM Report abuse rate up rate down Reply
bar

My dream vacation last yr was to go to Australia. I did along with my mom and sister. I will never go again simply because of the plane ride, the hassle of the airports, the rude and uncaring personnel working on the plane and very very cramped quarters! It was a huge hassel going from one plane to another, walking miles thru the terminals to try to make the next flight in time, people we stopped to ask either didn't know anything or didn't care and didn't help much. I loved Australia, but I will never fly out of the U.S. for a very long time simply because the plane trips were horrendous!

March 24 2011 at 6:03 PM Report abuse rate up rate down Reply
John

Southwest. SOUTHWEST. 'Nuff said.

March 24 2011 at 6:01 PM Report abuse rate up rate down Reply
cittasnoraa

For 115 bucks including tax I can get a 3 hour non-stop flight from Tampa FL to Manchester NH, through SOUTHWEST! I purchase online,print out my confirmation ticket at home, have someone drop me off curbside at the airport. Tip the the valet 2 bucks apiece for two bags, , show my ID an confirmation page,get my boarding pass head directly to the gate, go through security and I'm on the plane with my free carry on bag! I'm there in three hours and in another hour and a half I'm sitting on the deck of my cabin enjoying as chilled glass of Merlot! I have a one way return date which I can go online and make sooner or push back the return date whenever I want or I can take up to a year to use the ticket from the purchase date! If the ticket is more for the new date I pay online the difference if it's less they credit my card back the difference! Really, unless SOUTHWEST isn't available in your area your crazy to use anything else! I have a friend in Iowa who drives 100 miles out of the way because he can save that much money, time and hassel by flying SOUTHWEST!

March 24 2011 at 5:25 PM Report abuse rate up rate down Reply
bev

Fly only if absolutely necessary. Its the LAW OF SUPPLY AND DEMAND. If people are going to keep paying the prices they will continue doing what they want. Take control back.

March 24 2011 at 4:54 PM Report abuse rate up rate down Reply
bev

Until people start realizing they have the ball in their court the airlines will do what they want. If many people only flew when it was absolutely necessary they would get the message. Come on people Have you never heard of THE LAW OF SUPPLY AND DEMAND

March 24 2011 at 4:50 PM Report abuse rate up rate down Reply
murfusmc

JUST ANOTHER GREAT AMERICAN RIP-OFF, SCREW THE PUBLIC AND THE BIG WHEELS KEEP GETTING RICHER, WHAT A PITIFUL COUNTRY ITS GOING TO HELL IN A HANDBASKET.

March 24 2011 at 4:05 PM Report abuse rate up rate down Reply

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