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U.S. airlines rescind fare increase

United backtracks on hike to stay competitive, spokesperson says

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updated 3:09 p.m. ET Jan. 23, 2007

NEW YORK - United Airlines said Tuesday it rescinded a $5 fare increase on some flights after other carriers failed to back the price rise.

“We did rescind the entire increase this morning to remain competitive,” United Airlines spokeswoman Robin Urbanski said.

The failed fare increase, which United initiated Friday, follows a successful system-wide $5 increase started by United and American Airlines on Jan. 11.

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Higher fares, along with cost-cutting and resurgent demand, helped the long-suffering U.S. airline industry post profits in 2006 after years of losses.

Copyright 2009 Reuters. Click for restrictions.

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