Airlines match Delta fare hike

Most of the biggest airlines have matched a $5-per-flight fare increase initiated by Delta Air Lines Inc., citing higher fuel prices.

The increase is the second of four attempts to win the support of the major carriers this year, after at least 10 last year. Airlines generally roll back fare changes not matched by rivals to remain competitive.

The higher fare will affect a relatively small number of travelers. Most major airlines set their pricing on the more-traveled routes to keep pace with low-cost carriers such as Southwest Airlines Co. and JetBlue Airways Corp.

“While the impact of fare hikes has grown increasingly more symbolic than fundamental in our minds, the latest initiative is nonetheless welcome news,” analyst Jamie Baker of JPMorgan Chase & Co. said in a note to investors.

He didn’t change his forecast that industry revenue would rise 3% over last year for each seat mile flown.

Delta, citing higher fuel costs, raised fares Thursday. AMR Corp.’s American Airlines, the world’s largest carrier, UAL Corp.’s United Air Lines, Northwest Airlines Corp. and US Airways Group matched the increase Friday.

American subsequently pulled back the increase in markets where it faces strong competition from low-cost carriers, spokesman Tim Wagner said Monday. Northwest and United matched the increases in all but those markets as well, spokesmen said.

Continental Airlines Inc. spokeswoman Mary Clark didn’t return a call for comment.

U.S. airlines raised fares successfully 10 times last year. The average domestic airfare reached an 11-year high of $389 in the third quarter of 2006, according to the Transportation Department. Average fares are based on domestic round-trip or one-way fares for which no return is purchased.

For most U.S. airlines, fuel overtook labor as their single largest expense. Crude oil and jet fuel prices have risen since the start of this year, though they are lower today than they were at this time in 2006.