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Continental Airlines Backs Off Fare Increase,
Others Don't

Associated Press
HOUSTON — For the second time in as many months, Continental Airlines on Monday abandoned an attempt to raise fares, with several airlines declining to follow suit.

Continental, the nation's fifth-largest carrier, said last week it would implement a $20 increase on roundtrip flights up to 500 miles and hikes of $30 and $40 for longer trips.

United Airlines, American Airlines and TWA maintained similar hikes late Monday. America West, Delta Air Lines and US Airways rescinded their increase.

Northwest Airlines, which matched the increase in selected markets, did not return a telephone call. Southwest Airlines had not gone along with the increase.

Continental had a fare hike as much as $30 in February, but the increase was rescinded. The airline led a successful $20 industry-wide fare hike in January.

The airline and other carriers say higher fuel costs are eating profits.

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