American Airlines sparks industrywide fare increases

12/16/2010 | Bloomberg · Star Tribune (Minneapolis-St. Paul, Minn.) said that American Airlines increased prices on domestic fares, prompting others to follow suit. Rick Seaney, CEO of the site, said that raising base prices is difficult for airlines because low-cost carriers keep prices down. American's move was matched by Continental Airlines, United Airlines, Delta Air Lines and, possibly most importantly, Southwest Airlines. "I've never seen an airfare hike that Southwest joined that didn't stick," he said. "It's the bellwether."

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Bloomberg · Star Tribune (Minneapolis-St. Paul, Minn.)

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