Mon, May 28, 2012, 1:52 AM EDT - U.S. Markets closed for Memorial Day

Airlines attempt 3rd broad fare hike of 2012

Facing higher fuel prices, airlines seek third fare increase of 2012

RELATED QUOTES

SymbolPriceChange
UAL23.570.04
LCC12.300.14
JBLU4.750.15

DALLAS (AP) -- United and Continental airlines are bumping up prices again, just a week after raising fares because of high fuel costs.

A spokesman for United Continental Holdings Inc. said that his company raised prices on Tuesday night by $4 to $10 per round trip.

Officials for Delta and American said Wednesday that they matched the increase, while Southwest and US Airways spokesmen said their airlines had not. JetBlue and Alaska Airlines did not immediately respond for comment.

Industry officials are closely watching Southwest's reaction because it strongly influences prices on many U.S. routes. Just last week, Southwest raised many fares by $10 per round trip, a move that was widely copied by other airlines.

J.P. Morgan analyst Jamie Baker was skeptical that low-fare carriers, particularly Southwest, would match this week's increase so soon after the previous fare hike. That could force United and the others to roll back their increases.

Still, Baker said, the attempt to raise prices showed that travel demand was still strong, "And that, in our view, is more relevant than whether this particular increase takes root."

Airlines have raised fares twice already in 2012 after about 10 increases last year. With crude oil prices on the rise, jet fuel has increased about 8 percent in 2012 and about 12 percent since the same period in 2011, according to government figures.

 

7 comments

  • everfoxy  •  3 months ago
    Inflation?
  • Jeff  •  Appleton, Wisconsin  •  3 months ago
    No inflation? Yeah right. Good time to buy I Bonds and take a dump on pathetic CD rates for the next 3 years at least. Probably longer...
  • Ron in NC  •  3 months ago
    Airfares will continue to go up as long as people are willing to pay them. If I owned an airline I would do the same thing..........empty their wallets.
  • Dr. Detroit  •  3 months ago
    As long as there is no WAGE inflation.....then the Fed will deny inflation till the cows come home...despite prices rising on nearly every single thing you use or buy.
    • dms 3 months ago
      Don't buy into the fallacy that there are different types of inflation; e.g., wage inflation, energy inflation, food inflation, etc. There isn't.
  • The Answer is 42  •  3 months ago
    I fly a lot. They are jacking up prices like crazy. I mean by 100% or more on many routes. Absolutely disgusting. I guess I'll cut back. A lot...
  • Magron  •  De Witt, New York  •  3 months ago
    so..mild winter, low heating sales, fuel goes up to maintain bottom line.
    Now I will take a few seconds to explain why putting yourself out to conserve isn't worth the effort.
    oh..just did.
  • Tom  •  Easton, Pennsylvania  •  3 months ago
    Demand destruction. Get ready.
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Trading Center

Yahoo! Finance on Facebook

  YAHOO! FINANCE ON TWITTER