Airlines raise cost of flights

The airlines are trying to offset the cost of fuel.
KNIGHT RIDDER NEWSPAPERS
FORT WORTH, Texas -- United and Delta airlines on Friday matched an airfare increase that American Airlines launched, but it wasn't clear whether other competitors would follow.
American raised many of its domestic round-trip fares by $10 in its latest attempt to offset the high cost of fuel.
The increase excludes routes where the Fort Worth-based carrier competes with discount airlines, including Southwest Airlines and JetBlue Airways. It also does not affect flights from Miami, Fort Lauderdale and West Palm Beach, Fla., where the airline recently implemented a low-fare structure on all of its flights.
"Once again this is in response to the rising cost of fuel," said spokeswoman Jacquie Young. "That's been a major issue for us all year."
Typically, fare increases are rescinded if one or more of the major airlines does not match the increase.
Airline analyst Ray Neidl of Calyon Securities in New York said that despite strong traffic demand during the holidays, airline revenues are still flat thanks to intense competition.
"The revenue environment is still challenging," he wrote in a report to investors Friday.
Shares in AMR Corp., American's company, rose 30 cents, or about 3 percent, to $10.20 in trading Friday.