SFGate: Airline Fare Increases Continue

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Thursday, June 15, 2006 (AP)
Airline Fare Increases Continue
By HARRY R. WEBER, AP Business Writer


   (06-15) 10:21 PDT ATLANTA (AP) --

   Last-minute business travelers and some first-class fliers will pay more
this summer for domestic tickets on some of the major airlines.

   Some fares at the major airlines have been creeping up in recent months
largely because of persistently high fuel prices.

   Delta Air Lines Inc., the nation's third-largest carrier, has raised
one-way domestic fares on unrestricted first-class and walk-up coach
tickets by $50, spokeswoman Chris Kelly said Thursday. Other first-class
tickets were not affected.

   Wednesday's move by Delta was quickly matched by United Airlines, Americ=
an
Airlines and Continental Airlines, according to spokespeople at the three
carriers.

   Industry analyst Jamie Baker said in a research note that US Airways also
matched the increase, though an official there did not immediately return
a call Thursday seeking confirmation of that. Northwest spokesman Kurt
Ebenhoch said his airline is studying Delta's move.

   At Delta, the airline also has raised its most expensive one-way fares on
domestic coach and first-class tickets to $699 and $799, respectively.
Kelly stressed that the prices are not a cap, though she wouldn't say if
that means they could go even higher.

   "In a dynamic fuel environment, we must be flexible and be able to respo=
nd
to increasing costs while maintaining a competitive cost structure," Kelly
said.

   The airline's most expensive one-way domestic and first-class fares have
now increased $200 since Delta announced its SimpliFares program in
January 2005. A key element of the program was caps on those two classes
of fares at $499 and $599, respectively. Kelly said other elements of the
program, including a simpler fare structure, cheaper ticket change fees
and fewer restrictions, have not changed.

   She said the fares being increased at Delta represent less than 5 percent
of its domestic tickets.

   Shares of Elk Grove Village, Ill.-based UAL Corp., United's parent, rose
$1.25, or 4.5 percent, to $29.06 in afternoon trading Thursday on the
Nasdaq Stock Market. Shares of Fort Worth, Texas-based AMR Corp.,
American's parent, rose $1, or 4.6 percent, to $22.88 in trading on the
New York Stock Exchange, where shares of Phoenix-based US Airways Group
Inc. rose $1.89, or 4.5 percent, to $44.38 and shares of Houston-based
Continental Airlines Inc. rose $1.18, or 5 percent, to $24.80.

   Atlanta-based Delta and Eagan, Minn.-based Northwest Airlines Corp. are
operating under bankruptcy protection, and their shares are traded over
the counter. --------------------------------------------------------------=
--------
Copyright 2006 AP

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