AUTHOR upi.com



JANUARY 13 2012 19:13h

Delta hikes rates, other carriers follow

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ATLANTA, Jan. 13 (UPI) -- Delta Airlines increased its domestic fares Wednesday, prompting competitors to raise their prices today, the first increase this year.

On routes longer than 1,500 miles, Delta's rate is now $10 higher each way. United-Continental Airlines, American Airlines and US Airways matched the increase on long domestic flights.

Low-cost carriers Southwest-Air Tran and Frontier Airlines also raised their prices, USA Today reported. Fare increases often do not last, as carriers try not to price themselves too high above competitors but a low-cost carrier matching increases is an indication the increase will remain in place.

"We're still battling high fuel prices. Any kind of increase we take is specifically to combat the high cost of fuel," said Southwest spokesperson Katie McDonald.

Airlines successfully raised prices in the first half of last year while reducing the number of flights, leading to increased demand for seats. Mergers of airlines have also reduced competition between carriers.