SFGate: United, American Airlines raise round-trip fares in some markets

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Friday, October 27, 2006 (AP)
United, American Airlines raise round-trip fares in some markets



   (10-27) 11:10 PDT Chicago (AP) --

   Citing high fuel prices, United Airlines said Friday it has increased
fares by $6 per round trip on flights to some cities also served by
lower-cost carriers.

   American Airlines, a unit AMR Corp., immediately matched the move,
spokesman Tim Wagner said.

   United, a unit of UAL Corp., said the increase took effect Thursday night
and applies to most routes where it competes against discount carriers,
such as Chicago to Dallas and Atlanta, and Denver to San Francisco, Los
Angeles and New York.

   The exceptions are routes where the nation's No. 2 carrier competes
head-to-head with Southwest Airlines Co.

   Southwest did no go along with the move. "We are not going to be involved
in that fare increase at all," spokesman Ed Stewart said.

   Still, Credit Suisse airline analyst Daniel McKenzie said in a note that
the move by United, which follows an unsuccessful attempt last week by AMR
and Delta Air Lines Inc. to start an industrywide fare increase, is "a
sign that underlying demand trends remain strong."

   Northwest Airlines Corp. was studying United's price increase, spokesman
Kurt Ebenhoch said. Continental Airlines Inc. and US Airways Group Inc.
also both said they had not made an immediate decision to match.

   Airlines have raised fares many times in the past two years, partly to
cover higher fuel costs. --------------------------------------------------=
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Copyright 2006 AP

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