Delta Breaks $499 Fare Cap In Technology 'Glitch' ?

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Delta Breaks $499 Fare Cap In Technology 'Glitch'  
 
  

Monday March 14, 1:39 PM EST 


DOW JONES NEWSWIRES 

NEW YORK (Dow Jones)--Delta Air Lines Inc. (DAL) broke its new $499 fare cap on Friday when a "glitch" in the airline's system allowed it to load higher fares on a few routes.

Delta spokesman Anthony Black said the glitch in the Atlanta airline's technology resulted in the airline on Friday publishing $509 one-way walk-up fares on some routes. He said the airline has since corrected the fares and is offering refunds to any customers affected by the problem.

The affected routes include Atlanta to Burbank, Calif.; Oakland, Calif.; Ontario, Calif.; and Orange County, Calif.

Delta in January simplified its fare structure, eliminated some restrictions, and cut its one-way walk-up fares in half, capping them at $499.

 

The $509 fare prompted Merrill Lynch & Co. analysts to ask in a research note: "Could Delta be testing the upper-limit of its fare structure?"

Merrill pointed out that, while airlines have managed to push through a few fare hikes recently, no fares above Delta's cap have stuck.

Shares of Delta traded recently at $4.50, up 20 cents, or 4.7%.

- Elizabeth Souder, Dow Jones Newswires; 201-938-4148; elizabeth.souder@ dowjones.com 


  


Roger
EWROPS

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