NYTimes.com Article: Big Airlines Take Another Run at a Fare Increase

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Big Airlines Take Another Run at a Fare Increase

February 19, 2003
By REUTERS






CHICAGO, Feb. 18 (Reuters) - The big airlines, having
failed last week to push through a fare increase, tried on
a smaller scale today to raise fares or add a fuel
surcharge.

Several attempts to raise fares have failed the last two
years, the latest on Monday when several large carriers
abandoned a bid to raise fares $10 each way on most routes
to offset rising fuel costs because Northwest Airlines
decided not to match it on all routes.

But the $3 fuel surcharge added each way on most fares for
American Trans Air showed some signs of sticking today, an
air fare expert said. American Trans Air, a discount
carrier, is a unit of ATA Holdings.

Northwest, American Airlines, United Airlines and US
Airways all matched the ATA surcharge on competing routes.

American and Northwest matched ATA as a fuel surcharge.
United and US Airways called their matches fare increases
intended to offset rising fuel costs.

"This is hit-and-miss as every airline jockeys for
position," said Terry Trippler, an air fare expert who
works for Cheapseats.com.

But, he added, "you could just bet the rent that when the
dust settles this will be pretty much systemwide for all
airlines."

The leading airlines had net losses totaling more than $11
billion in 2002.

http://www.nytimes.com/2003/02/19/business/19AIR.html?ex=1046665327&ei=1&en=eb39cc4ff8a169f6



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