Tuesday, July 24, 2012

United-initiated airfare hike sticks after competitors join in

By Rebecca Ruiz, NBC News

Several carriers increased domestic round-trip airfares on Friday and Saturday by $4 to $10, following an initial hike by United Airlines.

The participation of Southwest Airlines, known as a budget airline, "virtually assures the hike will stick," said Rick Seaney, CEO of FareCompare.com.

The increase is the seventh hike attempt of the year, and the fourth time that domestic fares have been successfully raised since January.


Related:?Airlines gross $22.6 billion in ancillary revenues

Airlines were more aggressive about raising prices last year and early this year as jet-fuel costs soared. They grew cautious as the economy weakened in the second quarter, and they were under less pressure to raise prices because fuel costs eased starting in April.

The last successful broad U.S. fare increase was in late March.

The Associated Press contributed to this report.

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Source: http://overheadbin.msnbc.msn.com/_news/2012/07/23/12904537-united-initiated-airfare-hike-sticks-after-competitors-join-in?lite

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