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US carriers roll back fare increase

2-Mar-2011 11:50 AM

United, Continental, Delta and American raised many of their domestic fares by USD20 a round trip and cut that increase to USD10 by 28-Mar-2011 due to pressure from US discount carriers (AP/New Mexico Business Weekly, 01-Mar-2011). The carriers have reportedly attempted five broad-based price increases in 2011 with most of them sticking. CEO of Rick Seaney stated the recent rollback occurred after Southwest, JetBlue, AirTran and Frontier began raising fares only half as much as the larger carriers. Southwest reportedly led the resistance to the fare hike.