Most U.S. Airlines Raised Airfares to $10 per round trip

Most U.S. airlines raise airfares to $10 per round trip, as the airline attempts to increase revenue in the current year. These efforts have been made by the airline two weeks ago, but this attempt failed and eventually canceled.

United and Continental raised the minimum prices they’ll charge on sales and certain other fares, a spokesman said Thursday. The US Airways increase appeared to target business travelers.

The moves are the latest attempt by airlines to boost revenue during a normally slow time of year for travel. They succeeded in raising prices two weeks ago, but another fare hike last week fizzled and was eventually canceled.

US Airways Group Inc. confirmed Thursday that overnight it had raised fares by $4 to $10 per round trip. American said it was considering whether to match the increase. Southwest and JetBlue said they had not matched the increases.

Jamie Baker, an analyst for J.P. Morgan, said the US Airways price increases were on tickets favored by business travelers, including first-class and economy fares eligible for instant upgrade.

Airline officials have said that demand among corporate travelers has been holding up better than leisure travel because vacationers are more sensitive to small increases in price.

Airlines have been able to boost prices partly by limiting the number of flights and available seats. U.S. airlines have tried about 20 fare hikes this year, with half of them sticking. The others were rolled back, usually because some airlines – typically a low-cost carrier such as Southwest or JetBlue – declined to go along.

Efforts made by some airlines raise airline ticket can help increase revenue in the third quarter. Delta and United Continental Holdings Inc. earned more than $ 500 million respectively in the third quarter, while American Airlines parent AMR Corp. and Southwest Airlines Co. lost money.

Southwest Airlines to Begin Flights To Newark Liberty

Southwest Airlines Co. said Friday it will boost its New York-area flying next year as part of a deal that also seeks to ease concerns from regulators about the proposed merger of UAL Corp.’s United Airlines and Continental Airlines Inc.

Dallas-based Southwest plans to lease take-off and landing slots at Newark Liberty International Airport from Continental, adding to its existing services in the region from New York LaGuardia and Islip on Long Island.

Southwest would lease slots to operate 18 daily round-trip flights at peak and off-peak times, which analysts said would likely be enough for high-frequency service to three yet-to-be-disclosed destinations. It would start some flights in March 2011, with a full schedule by next June.

Continental and United said in a joint statement that the plan was a fair solution to concerns raised by the Department of Justice about their proposed merger. The airlines have responded to a second request for information from regulators, and had previously said they were confident of closing a deal by year end. The Southwest plan is contingent on sealing a deal by Nov. 30.

Newark is the New York area’s largest hub and a stronghold of Continental, but rivals including Delta Air Lines Inc., AMR Corp.’s American Airlines and JetBlue Airways Corp. are seeking to buttress their presence in the country’s largest travel market.

Southwest has a limited presence at slot-restricted LaGuardia and successfully campaigned to block a planned transfer of slots at the airport involving Delta and US Airways Group Inc. Delta aimed to strengthen its position at LaGuardia while US Airways would have secured more access to Reagan National in Washington, D.C.

For Southwest, an enhanced New York presence fits its strategy of winning more premium business travelers. The country’s largest carrier of domestic passengers is revamping its frequent-flier program to secure more high-paying corporate accounts, as well as providing in-flight wireless service and credit card tie-ins, a key revenue source for the industry.

The airline, like other low-cost carriers, had reeled in growth plans over the past 18 months but continues to add back limited capacity to balance supply with recovering demand. Southwest had previously announced plans to add two new cities next year to expand its network to 71 destinations. It will also decide in December whether to order larger versions of the Boeing 737 that would suit more congested airports like Newark.

Source : WJS

US Airways, Delta Lead Traffic Decline on Storm Cancellations

US Airways Group Inc. and Delta Air Lines Inc. led the six largest U.S. carriers to a 1.7 percent drop in February traffic as storms caused thousands of flight cancellations.

US Airways had the widest traffic decline at 4.7 percent, and said the storms reduced its revenue by about $30 million last month. UAL Corp.’s United Airlines said yesterday its traffic slid 0.5 percent in that time, and that the storms lowered revenue by $40 million.
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