FORT WORTH, Texas, June 8 (UPI) -- The latest effort by major U.S. airlines to cover rising fuel costs with higher air fares has collapsed, the Star-Telegram reported Tuesday.
Continental Airlines last week raised round-trip fares by as much as $40. American Airlines matched the hike on some fares and routes, as did Delta Air Lines and Northwest Airlines.
But the airlines backed down, one by one during the weekend, lowering the recently raised fares to previous levels.
More attempts at price hikes may come as the big hub-and-spoke carriers stagger under the weight of high price jet fuel.
That burden is increasingly worrisome to industry observers. The International Air Transport Association says the global airline industry could lose $3 billion globally this year because of fuel prices.
Some analysts have predicted Delta Air Lines may be bankrupt by December -- in part because of high jet-fuel costs.
