- Text
Airlines raise fares, but will they stick?
Delta Air Lines Inc. raised one-way fares by $4 to $10 across most of their U.S. routes late Tuesday, according to Rick Seaney of Farecompare.com. (AP)
NEW YORK - Holiday travelers may want to lock in airfares while they still can. At least two U.S. airlines are raising prices for the first time since late summer and others may follow.
Delta Air Lines Inc. raised one-way fares by $4 to $10 across most of their U.S. routes late Tuesday, according to Rick Seaney of Farecompare.com. Soon after, United Continental Holdings Inc. matched the increases. It's the first widespread fare increase attempt since early August and the 17th try this year.
The increase may not stick. Airlines often roll back fare increases if enough competitors don't match them. A recent attempt to raise prices in smaller cities met resistance, Seaney said.
Of the 16 previous attempts to increase prices this year, half of them failed. The eight that succeeded have brought average fares up by $58 to $70, said Citi analyst Will Randow.
Some travelers may avoid higher fares by taking advantage of fare sales. Many airlines recently matched a winter fare sale from Southwest that runs through Thursday. It excludes most peak travel days around Thanksgiving and Christmas.
The current fare hikes come as airlines begin reporting third-quarter financial results. Raising prices can send a positive signal to investors because it's a sign of strong demand and helps airlines' earnings.
Still, higher fares weren't enough to prevent another loss at American Airlines parent AMR Corp., which it blamed on higher fuel costs. On Wednesday AMR reported it lost $162 million in the third quarter its fourth straight losing quarter. Southwest Airlines Co. is set to report results Thursday morning.
- Police: 3 exotic animals still loose in Ohio
- Exotic animal farm owner had history of trouble
- Marijuana legalization support at record high
- 8,000-foot-high dust cloud blankets Lubbock
- JetBlue "hero" attendant gets probation
- Boy Posing As Girl On Facebook Extorts Sex
- Marines to allow troops to wear KIA bracelets
- Haircut attacks spotlight Ohio Amish community
- People held in Philly house say they were abused
- Brothers charged with stealing Penn. bridge
- Airlines raise fares, but will they stick?
- Wash. woman says dog being held for ransom
- Boy survives 3-story drop in Boston blaze
- Cornel West arrested at Supreme Court protest
- Wall Street protest in delicate dance with media
- Obama dedicates MLK Memorial
- Wall Street protesters plan march on DA's office
- Amgen 3Q report to focus on key drug sales trends
- Death penalty sought in Morocco bombing trial
- Protesting students occupy Chile's Congress
- 30,000 Finnish technology workers to strike
on Facebook
- Qaddafi dead after Sirte battle, PM confirms
- Libyan officials: Qaddafi killed in Sirte
- Sheriff: Missing Ohio monkey believed eaten
- Sheriff: Big cat bit owner's head after suicide
- GRAPHIC VIDEO: Qaddafi's bloody body
on CBS News