This evening Continental raised fares system-wide by $5 one-way . The increase applies to walk-up, 3-day, 7-day, 14-day and 21-day fares. The increase affects 777 of the top 1,200 markets.
It is common for carriers to file system-wide increase on Thursday night in order to give other carriers time over the weekend to decide whether or not to match the increase.
This is the fifth attempt at a system-wide increase this year (see chart here). The last increase by Delta Air Lines on March 22 met with limited success. All fare increases so far this year have had difficulty sticking with the increases either being partially or completely rolled back. In contrast, the two increase by Southwest airlines so far this year have stuck.
While increases so far this year have not had much success, this round by Continental may have greater holding power. We are entering the high travel season and overall price levels are below 2006 and 2005 for this time (see chart here). Earlier today, FareCompare’s national airfare index stood at 434. The index was at 471 on May 3, 2006 and 468 on May 3, 2005.
I will send updates as other carriers match the increase.
Additional Fare Increase News
Last night (May 2) United raised walk-up fares by $25 and $50 one-way in 134 of the top 1,200 markets. This afternoon US Airways matched the increase in 22 top markets and this evening Delta matched the increase in 99 top markets
On Friday, April 27th Southwest Airlines raised fares by $1 and $2 one-way in approximately 25% of the markets it serves. The Southwest increase was matched by all carriers.
