This article from NYTimes.com has been sent to you by psa188@juno.com. Fare Increase Is Rescinded by Big Airlines February 18, 2003 By EDWARD WONG Five major airlines that tried to raise fares by $10 each way over the weekend rolled back the price increase yesterday after Northwest Airlines refused to match it. By noon yesterday, American Airlines, United Airlines, Delta Air Lines, Continental Airlines and US Airways had lowered fares back to the levels of Thursday. Northwest has consistently resisted efforts by its rivals to raise prices. Last year, it also refused to go along with several fare increases, forcing the other carriers to roll them back within days. Northwest executives have said they do not believe the depressed travel market will support fare increases. Northwest also has more cash on hand than some of its competitors, giving it more leeway to cope with lower revenue. "It doesn't surprise me," Joe Brancatelli, an Internet columnist and advocate for business travelers, said of the rollback. "These guys can't keep laying these things on a bad fare structure, and that's the problem right now." For nearly three years, many business travelers have been shunning the high walk-up fares that the traditional airlines have relied on for their profits. The carriers will woo back those travelers only by lowering their walk-up fares, Mr. Brancatelli said. Continental Airlines began the price increase on Friday when it added $10 each way to nearly all its fares because of what it called "dramatically higher fuel expenses." American Airlines and US Airways followed suit. They were joined Saturday by Delta and United. That left Northwest, which remained silent throughout the weekend. "Northwest surprised me on this one," said Terry Trippler, an air fare expert who works for CheapSeats .com. "I was willing to bet they were going to do it." That is because the airlines are facing much higher fuel prices this year, Mr. Trippler said. A general strike in Venezuela and the uncertainty about an American invasion of Iraq have caused prices to soar. The spot price for a gallon of jet fuel is now $1.20, more than double the 57 cents it was a year ago, according to the Air Transport Association, the industry's main trade group. But because of Northwest's reticence, what was shaping up to be the industry's first significant fare increase in a year or more fizzled. http://www.nytimes.com/2003/02/18/business/18AIR.html?ex=1046577607&ei=1&en=7d620f42535c8d6b HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company