Air Fares Hiked for Second Time in Two Weeks

May 19, 2006
The airline industry has been hit by soaring fuel prices and low-fare competition that has made it hard for carriers to cover costs.

Continental Airlines said it has raised domestic fares by $2 each way to offset the rising cost of jet fuel.

The airline said the $2 increase is for flights within the United States and to and from Canada, and is in addition to another $2 increase imposed two weeks ago.

The airline industry has been hit by soaring fuel prices and low-fare competition that has made it hard for carriers to cover costs. In the past year, however, airlines have initiated several lasting fare hikes.

Other U.S. airlines said they were studying Continental's fare increase but had not matched it.

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