United follows American in boosting fares

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United follows American in boosting fares

CHICAGO (AP) =97 United Airlines on Friday raised non-sale fares on its=
 North=20
American routes by $10 per round trip starting June 1, matching a move made=
=20
by American Airlines a day earlier. United spokesman Jason Schechter=20
declined to elaborate on the reason behind the increase beyond citing the=20
action by American. Tim Wagner, a spokesman for American, said he could not=
=20
comment on a reason for the fare increase, which was approved Thursday and=
=20
starts June 1. Both American and United =97 the world's two biggest airlines=
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=97 are desperate for revenue after losing billions of dollars in the=
 airline=20
industry's worst slump ever. United, which filed for Chapter 11 bankruptcy=
=20
protection in December, reported an industry-worst $1.34 billion loss last=
=20
week for the first three months of 2003. It cited the weak economy, war in=
=20
Iraq, SARS and the necessity of low fares for the latest deficit and a=20
decline of 8% in passenger revenue. American lost $1.04 billion for the=20
same period and narrowly averted falling into bankruptcy itself. The=20
carrier recently announced that it had 7.1 million passengers in April,=20
down 8.1% from April 2002. The higher fares also will offset the expiration=
=20
of the passenger security fees that have been levied on each flight as part=
=20
of a government plan to assist the ailing industry during the war-related=20
downturn.


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