Airlines Cancel Fare Hike

A recent initiative by some airlines to increase fares by $6 per round trip was canceled Sunday.

The move was prompted when United Airlines went back to the old rates on Saturday. They were the airlines that had initiated the rate hike.

Continental Airlines, Delta Air Lines and Northwest Airlines followed the leader on Sunday by reverting to their original fares.

As per the usual, the airlines cited rising fuel prices as the reason for the move.

Ultimately the move failed, because other airlines, such as Southwest Airlines and US Airways, didn’t join the pack. When the airline industry doesn’t move as one, the move usually fails—as it did here.

Given the fact that airlines have played with fare changes multiple times over the past couple of years, there will be more attempts in 2007.