Recent air fare hikes likely to stick Carrier lost $291M in February as fuel costs batter airlines (Reuters) - Recent air fare hikes by major U.S. airlines to combat soaring fuel prices seem to have staying power despite faltering on Monday, the chief executive of United Airlines said Thursday. Glenn Tilton, in a phone message to employees, said United, a unit of UAL Corp., has had some success in improving unit revenue and increasing fares. continued below Advertisement ``It appears that after some tentativeness in the marketplace, the latest fare increase may well stick,'' Tilton said. ``The pricing can, and certainly must, improve.'' Several major airlines raised fares by $5 on one-way domestic flights last week, following the lead of Continental Airlines Inc. Fares have been inching higher since February. Carriers, including Continental, rescinded the fare hikes on Monday, fearing that higher fares would scare off customers. The roll-back, however, proved temporary in most cases, when airlines began nudging fares up again. A UAL spokeswoman said the airline raised fares on most domestic routes late last week, rescinded the hikes on Monday and reinstated them on Tuesday. The airline industry has been battered by soaring fuel costs and weak revenue. Historically, airlines faced with high fuel prices could raise fares to pass the expense on to customers. But fierce competition from lower-cost rivals has kept ticket prices depressed, causing airlines to lose money. Elk Grove Township-based United has been in bankruptcy since 2002, struggling to reorganize itself into a leaner company that is better equipped to deal with industry challenges such as fuel prices and low-cost rivals. Also on Thursday, United reported an operating loss of $179 million for the month of February, and a net loss of $291 million, as soaring fuel costs continued to batter the No. 2 U.S. carrier. The airline said mainline passenger revenue fell 3 percent from a year earlier. Unit costs rose 3 percent overall, while costs excluding fuel fell 4 percent, it said. UAL ended the month with a cash balance of $2.2 billion, including $870 million in restricted cash. The cash balance increased $183 million in February, driven by strong bookings and was ahead of plan. United is trying to achieve $725 million in annual labor savings in its effort to exit Chapter 11 protection. Chief Financial officer Jake Brace said in a statement that the carrier still needs to terminate and replace its defined benefit pension plans. ``Our goal remains to reach agreement with our unions on this issue and avoid a costly, time-consuming trial currently set to begin May 11, but there is much work left to do,'' Brace said. Roger EWROPS