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Airfares on the rise, again
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August 13, 1998: 5:15 p.m. ET
United, Delta hike business fares, while American increases leisure prices
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NEW YORK (CNNfn) - The fare wars are heating up again after several major airlines announced plans to increase prices for both business and leisure travelers.
Delta Air Lines and United Airlines are apparently taking advantage of a possible pilots strike at Northwest Airlines by hiking business fares on certain routes.
The airlines have increased so-called walkup fares by $10 to $30 only on routes where Northwest is their sole competitor, according to Terry Trippler, editor of The Airfare Report.
"This is a direct reaction to the labor problems at Northwest," said Trippler. "It's something I've never seen before."
The only exception Trippler found was the Memphis-Chicago O'Hare route, where United did not raise its fare.
Northwest (NWAC) is facing an impasse in talks with its pilots that could lead to a strike as early at August 29. The nation's fourth largest airline has cautioned passengers it cannot guarantee travel will not be disrupted if a strike ensues.
A spokeswoman for Delta (DAL) said the fare hike was a result of "increased demand" and "independent" of labor unrest at Northwest. A spokesperson for United (UAL) was not immediately available for comment.
Delta raised its business fares on Aug. 3, just five days after Northwest pilots announced their strike deadline, according to Trippler. United raised its fares a few days later on Aug. 7.
Meanwhile, American Airlines (AMR) Thursday announced it would raise most domestic leisure fares four percent.
Delta and United said they were uncertain whether they would follow suit.
This is the sixth attempt this year and the third attempt in three weeks by a major airline to hike domestic leisure fares. In each instance, the increases were reversed after at least one major airline refused to match the others.
American, the nation's second largest carrier, increased prices on tickets bought seven and 21 days in advance for travel in the United States.
A spokesman for AMR Corp., the parent of American, said the fare increases do not apply to markets dominated by Northwest.
American's decision to exclude Northwest's hubs from the latest fare increase raises the chances of a successful, industry-wide fare increase, one analyst said.
"We think it's been done in such a way that it's likely to stick," PaineWebber analyst Sam Buttrick said. 
-- from staff and wire reports
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