Leisure Fares boosted by American

March 14, 2005
American Airlines raised many of its leisure fares by as much as $10 each way Friday, hoping to snare more revenue to offset the high cost of fuel.
American Airlines raised many of its leisure fares by as much as $10 each way Friday, hoping to snare more revenue to offset the high cost of fuel.

But like many previous late-week fare increases, whether the higher prices will last through the weekend remains to be seen. United Airlines had not matched the higher fares Friday afternoon, after Northwest Airlines initiated the increase.

Typically, fare increases are rescinded after a few days if one or more major carriers does not match them. Several major carriers, including American, matched Northwest's increase.

Northwest raised fares by $5 each way on routes less than 1,000 miles. Fares for longer trips jumped by $10 each way.

Fares were not raised in markets where airlines compete directly with discount carriers Southwest Airlines or JetBlue Airways, which rarely match price increases.

"With the continuing high cost of fuel, we think it's appropriate to implement a small fare increase to help mitigate that expense," said Tim Wagner, an American spokesman.

Jamie Baker, an airline analyst with J.P. Morgan Securities, predicted in a report Friday that the increase will remain in place, given the high price of fuel.