NWA Tries Again to Increase Fares

Northwest Airlines is once again trying to raise fares to offset some of the impact of soaring fuel prices.

The Eagan-based carrier is adding $50 to one-way fares that had been capped at $499. It's upping by $5 each way fares that matched low-fare competitors. And it's requiring a two-night stay for some fares, making them less attractive to business travelers.

Despite record fuel costs and the staggering losses posted by Northwest and most other carriers, many previous efforts by airlines to raise fares this year have failed.

"While unsuccessful in the past, it is incumbent upon Northwest to vigorously pursue changes that will improve our revenue and partially offset the staggering effect of increasing oil prices, currently at $60 a barrel," said Northwest's executive vice president for marketing and distribution, Tim Griffin, in a message to airline employees.

Airlines often pull back from fare increases if rivals don't follow, fearing higher prices would drive customers to competitors.

Northwest and other airlines, for instance, have tried and failed five times this year to increase the $499 one-way walk-up fares implemented by Delta Air Lines early this year. Other carriers reluctantly matched Delta to stay competitive.

As of Wednesday afternoon, Continental Airlines matched Northwest's fare moves. Delta selectively matched but did not increase fares in low-cost carrier markets and did not change minimum-stay requirements.

"We are suspicious about whether this fare increase can even hold,'' airline analyst Helane Becker of market researcher The Benchmark Company said in a Wednesday research note.