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Airline fare increases continue at some major carriers

By The Associated Press
Posted 2:05AM on Thursday 15th June 2006 ( 19 years ago )
<p>Last-minute business travelers and some first-class fliers will pay more this summer for domestic tickets on some of the major airlines.</p><p>Some fares at the major airlines have been creeping up in recent months largely because of persistently high fuel prices.</p><p>Delta Air Lines Inc., the nation's third-largest carrier, has raised one-way domestic fares on unrestricted first-class and walk-up coach tickets by $50, spokeswoman Chris Kelly said Thursday. Other first-class tickets were not affected.</p><p>Wednesday's move by Delta was quickly matched by United Airlines, American Airlines, Continental Airlines, Northwest Airlines and US Airways, according to spokespersons at the five carriers.</p><p>At Delta, the airline also has raised its most expensive one-way fares on domestic coach and first-class tickets to $699 and $799, respectively. Kelly stressed that the prices are not a cap, though she wouldn't say if that means they could go even higher.</p><p>"In a dynamic fuel environment, we must be flexible and be able to respond to increasing costs while maintaining a competitive cost structure," Kelly said.</p><p>The airline's most expensive one-way domestic and first-class fares have now increased $200 since Delta announced its SimpliFares program in January 2005. A key element of the program was caps on those two classes of fares at $499 and $599, respectively. Kelly said other elements of the program, including a simpler fare structure, cheaper ticket change fees and fewer restrictions, have not changed.</p><p>She said the fares being increased at Delta represent less than 5 percent of its domestic tickets.</p><p>Shares of Elk Grove Village, Ill.-based UAL Corp., United's parent, rose $1.25, or 4.5 percent, to $29.06 in early afternoon trading Thursday on the Nasdaq Stock Market. Shares of Fort Worth, Texas-based AMR Corp., American's parent, rose $1, or 4.6 percent, to $22.88 in trading on the New York Stock Exchange, where shares of Phoenix-based US Airways Group Inc. rose $1.89, or 4.5 percent, to $44.38 and shares of Houston-based Continental Airlines Inc. rose $1.18, or 5 percent, to $24.80.</p><p>Atlanta-based Delta and Eagan, Minn.-based Northwest Airlines Corp. are operating under bankruptcy protection, and their shares are traded over the counter.</p>

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