Airlines’ fare hike appears to falter

July 19, 2011 | Online Travel

The latest effort by airlines to broadly raise fares - hikes of $4 to $10 per round trip within the U.S. - faltered Monday as some airlines balked at the increase.

United and Continental started the fare hikes on Friday and most other airlines went along at first. But on Sunday, Southwest rolled back the increases, and American did the same Monday morning.

"We rescinded this increase because other airlines also pulled it back," said Tim Smith, a spokesman for American.

Rick Seaney, CEO of FareCompare.com, said Southwest's "waffling" over the weekend was "likely to scuttle this price increase attempt."

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