Airlines raising fares

Delta Air Lines Inc., Southwest Airlines Co. and other major U.S. carriers have raised fares $20 round trip in the first successful price increase for most domestic routes this year.

The higher prices, initiated June 10 by Delta and US Airways Group Inc., gradually were matched by other U.S. carriers, including Southwest, the largest low-fare airline. It was the first broad increase this year, US Airways and American Airlines confirmed.

An industrywide increase would ease pressure on airlines that have been slashing prices to win customers during the recession. Those fare reductions, a drop in business travel and rising jet-fuel prices will push U.S. carriers to a combined $1 billion in losses this year, according to the International Air Transport Assn.

“Domestic airlines have been searching for a bottom the past six months, and it appears this hike, along with a slowdown in domestic airfare sales, is the first sign that bottom may be near this quarter,� said Rick Seaney, chief executive officer of ticket research firm FareCompare.com.

Airlines often rescind fare increases that aren’t matched by others to avoid having higher prices than rivals.

Delta, the world’s largest airline, raised fares $10 each way in U.S. markets and $10 to $40 each way on some international routes “in response to increasing cost pressures on our business,� spokeswoman Betsy Talton said.

Southwest’s price boost of $10 each way was its largest this year, spokesman Paul Flaningan said.

Delta, American, Continental Airlines Inc. and Southwest all recently have said they will trim more seating capacity this year than initially planned. The carriers hope that fewer available seats will enable them to raise ticket prices more often.