30/07/10, 05:47:49 EDT

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The anatomy of an airline fare increase

star-telegram.com

The major airlines played an intricate chess game with airfares over the weekend, raising and lowering prices on routes nationwide as they responded to Friday's price increase by Delta Air Lines.

Rick Seaney, chief executive of FareCompare.com, an Internet travel site based near Plano that monitors ticket prices, said the maneuvering typifies how airlines react to competitors' price changes.

"There's almost never a case where it's clear cut," he said. "Has a fare increase stuck? It depends on how you look at it."

Seaney said a clear picture won't emerge until today. But "it is safe to say right now that a significant number of passengers are paying $10 round trip more than they did on Thursday last week."

He broke down several days' worth of price tactics:

Thursday, 9 p.m.

Delta raises fares $5 each way nationwide.

Friday, 12:30 p.m.

No other airlines have matched.

Friday, 8 p.m.

American and US Airways match 50 percent of the increase, while United matches all of it. Northwest and Continental are still up in the air.

Saturday, 11:20 a.m.

Northwest fully matches the increase. Continental raises fares on 33 percent of flights. United rolls back its increase on 20 percent of flights.

Sunday, 5 p.m.

American has rolled back the increase on 8 percent of flights, Continental and Delta on 10 percent, Northwest on 12 percent, US Airways on 15 percent.

Monday, 1:21 p.m.

Delta restores all of its increase. Northwest terminates the increase on 20 percent of flights, United on 6 percent.

Here are the percentages of flights that, as of late Monday, had experienced a fare increase:

45% American

23% Continental

75% Delta

68% Northwest

74% United

5% US Airways

 Printable Version  | published Sep 11, 2007