SFGate: Continental Airlines matches American's fare hike

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This article was sent to you by someone who found it on SFGate.
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inancial0901EDT0028.DTL
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Friday, September 24, 2004 (AP)
Continental Airlines matches American's fare hike



   (09-24) 06:01 PDT HOUSTON (AP) --
   Continental Airlines and has matched a fare increase initiated by rival
American Airlines, but it was uncertain whether the hike would remain in
place if not all carriers followed suit.
   Blaming higher jet fuel costs, Fort Worth-based American announced
Wednesday it was immediately raising most of its fares within North
America $5 one way and $10 on round trips.
   The airfare increase has also been matched by Northwest Airlines, which
blocked many previous efforts by holding its fares down on most routes.
   But it remained unclear what many low-cost carriers would do.
   Dallas-based Southwest, which is considered the low-fare leader, would n=
ot
match the increase, a spokesman told the Houston Chronicle in Friday's
editions.
   Unless every carrier matches a proposed increase, it is nearly always
abandoned because airlines say they can't afford to lose business to
lower-priced competitors.
   The airline industry continues to struggle as carriers battle to combat a
mixture of low costs and changing business travel trends, along with the
stubbornly high cost of fuel.

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Copyright 2004 AP

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