Airlines bail on fare hike

March 13, 2000
Web posted at: 4:39 p.m. EST (2139 GMT)

ATLANTA (CNN) -- Airfares are on the way back down again. Continental Airlines, Delta Air Lines and other carriers have reversed their decisions to raise ticket prices.

Due to rising fuel costs, Continental announced Friday it was hiking airfares from $20 to $40 per roundtrip, based on mileage. This had a bandwagon effect, with United, American, Delta and TWA following Continental's lead over the weekend.

But the increase didn't last long.

Delta, Continental, Northwest, US Airways and America West rescinded their increases on Monday. Industry analysts said they expect other airlines to start doing the same.

Southwest Airlines said it had not matched Continental. "We try to keep our fares down," said a spokeswoman for the no- frills airline.

Friday's announcement was the third time this year that Continental led the way in trying to push up fares. The carrier tried to enact an airfare hike last month. But it failed when Northwest wouldn't go along.

Many major airlines had already implemented a fuel surcharge of $20 in January.

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