2 airlines drop fare increases tied to fuel

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March 14, 2000

2 airlines drop fare increases tied to fuel

By Nancy Fonti

DOW JONES NEWS SERVICE NEW YORK - Delta Air Lines and U.S. Airways withdrew a steep fare increase yesterday aimed at recouping high jet-fuel costs, all but killing the industry's latest attempt to raise prices.

A third carrier, American Airlines, pulled back the fuel surcharge on three of its routes. Also, Northwest Airlines changed its plan to impose the increase.

The latest attempt to boost fares - up to $40 per round-trip ticket - was initiated Friday by Continental Airlines Inc. Continental blamed jet-fuel prices that have more than doubled in the past year.

"We said Friday we were matching [the increase] on selected fares," a Northwest spokesman, Jon Austin, said yesterday. "That's no longer true. We are not matching on any cities or in any fare categories."

Northwest offered no explanation for reversing the increase.

American then withdrew the increase on routes out of Minneapolis, Detroit and Memphis, Tenn., which are Northwest's main hub cities.

"This thing is over unless Northwest changes its tune," said Tom Parsons, editor of the Internet site Bestfares.com.

Continental's initiative was the airlines' third attempt to raise prices this year. Continental led a successful attempt for a $20 fuel surcharge on round-trip tickets in early February, but an effort to boost prices later that month failed.

The higher prices for fuel this year don't justify the magnitude of the latest price hike, a Long Island airline consultant, Bob Mann, said.

"This is a veil for a price increase," Mann said. "A portion of the $40 clearly compensates for incremental fuel costs. The balance is simply a fare increase."

http://www.phillynews.com/inquirer/2000/Mar/14/national/AIR14.htm

-- Martin Thompson (mthom1927@aol.com), March 14, 2000


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