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Thu, May 27, 2004

Majors Cave In On Gas Prices

Several Roll Back Fare Hikes

Yet another effort by commercial air carriers to hike rates in light of skyrocketing fuel prices appears to have crumbled.

In this latest instance, financially-troubled US Airways was the first to roll back the fare hike. Other airlines that had signed on -- American, Delta and Northwest -- also crumbled.

It was the third time in six months that the airlines had tried and failed to increase prices, hoping to cover rising fuel costs.

Ironically, since most of the roll backs have been blamed on low-cost carriers that refuse to go with the flow, Southwest Airlines appears to be the lone hold-out, refusing to roll back it's increases.

While some airlines had boosted prices by as much as $20 a leg on round trip tickets, Southwest's increase is a relatively modest one: $1 for flights of less than 500 miles and $2 for flights of longer duration.

FMI: www.southwest.com

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