Several U.S. airlines gave up an attempt to raise round-trip airfares by $6 after United Airlines, the airline that initiated the fare hike, returned to their old rates over the weekend.
Southwest refused to increase its fares at all; while Northwest looked stupid after announcing an increase moments before United Airlines gave up on their own.
The airlines cited raised “fuel costs” as the reason for the abortive fare hike.
Business Week says, “Airlines have raised fares many times in the past two years…But such attempts generally fail to stick when not all competitors join in bumping up prices.”
Meet the Airline industry, a group so ass to elbows in disarray, they can’t send around a memo.