United raises fares
on international flights

updated 6:52 p.m. ET June 30, 2004

CHICAGO - United Airlines announced a 5 percent fare hike Wednesday on most flights to international destinations from the United States, citing rising fuel costs as the reason.

The increase is the latest of numerous attempts by U.S. carriers this year to try to have passengers share the burden of soaring jet-fuel prices. Last month, United rescinded a $10-per-round-trip fuel surcharge on most North American fares after only a day when American Airlines was the only competitor to follow.

Delta Air Lines spokeswoman Peggy Estes said the Atlanta-based carrier was considering a similar hike but was still reviewing United's action.

"Escalating fuel prices are a growing concern throughout the airline industry," said John Tague, executive vice president of Elk Grove Village, Ill.-based United, a unit of UAL Corp. "We must take the necessary steps to manage our exposure to this unprecedented rise in expense."

United, which hasn't turned a profit in four years, is under intense pressure to raise revenue as it tries to emerge from Chapter 11 bankruptcy. Its nearly two-year effort to obtain federal assistance ended in failure this week when the Air Transportation Stabilization Board rejected its request for a $1.1 billion loan guarantee.