From Deseret News archives:
Delta says it isn't breaking fare cap
Airline raises fares $10 on flights that it codeshares with other carriers
On Wednesday night and Thursday morning, Continental Airlines Inc., UAL Corp.'s United Airlines, Northwest Airlines Corp. and America West all added $10 to fares that had been capped at $499 to match Delta.
Delta, which operates a hub at Salt Lake City International Airport, raised fares $10 on flights it codeshares with other carriers. Codeshares are pacts between airlines that make it easier for passengers to book trips on multiple airlines.
Delta spokesman Anthony Black denied that Delta was breaking its "Simplifares" cap of $499 for one-way walk-up fares aimed at business travelers. He said Delta said it would match codeshare fares when it announced Simplifares in January.
The nation's older airlines have been losing hundreds of millions of dollars, as high oil prices make fuel expensive and competition from discounters keeps fares low. Crude oil prices rose again on Thursday to more than $56 a barrel, up more than 50 percent from a year ago.
Those fuel prices have airlines chafing under Delta's cap.
"Continental and Northwest have felt right from the start that this is not something that made sense, this is not something they want to do," said Helane Becker, an airline analyst with the Benchmark Co.
Just last week Northwest tried to raise the $499 cap by $50. Several carriers followed, but the increase fell apart after Delta and AMR Corp.'s American Airlines failed to match it.
American didn't immediately match Thursday's increase, either. Spokesman Tim Smith said the airline was studying the increases.
"It doesn't look like it has legs to it right now, because American's holding out," Becker said.
Northwest shares rose 10 cents to close at $5.38 on the Nasdaq Stock Market. On the New York Stock Exchange, Continental shares dropped 2 cents to close at $13.85, Delta rose 3 cents to close at $3.86, and AMR Corp. dropped a penny to close at $13.05.
