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United, Continental bump round-trips by up to $50
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NEW YORK - Two of the nation's biggest airlines boosted round-trip fares by as much as $50, raising the stakes in their fights against rapidly rising fuel costs and putting pressure on competitors to follow suit.
United Airlines, the second-largest U.S. carrier, led the latest round of increases late Thursday, hours after crude oil prices surged to a record $111 a barrel. Continental Airlines Inc. matched the increases Friday. Several other carriers, including Northwest Airlines, said they were studying the move.
It was the fourth week in a row that carriers have raised ticket prices, according to a tally by FareCompare.com.
United spokesman Robin Urbanski said the higher fares are based on length of flights, meaning that trips shorter than 500 miles will cost travelers $4 to $10 more round-trip. Journeys of more than 1,500 miles are now $12 to $50 more expensive than before the increase, she added.
Other carriers will likely be tempted to match the increases, especially in cities where there is little competition, industry observers said. But airlines run the risk of driving down demand if they push prices too high.
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