United-Continental and US Airways matched and expanded a $5 one-way price hike initiated by Southwest Airlines in domestic medium- and long-haul markets, according to J.P. Morgan analyst Jamie Baker.
"Given Southwest's blessing, a broad, successful industry fare increase appears likely," Baker wrote in a research note, adding that he expected American Airlines and Delta Air Lines to match.
He suggested that short-haul markets also may experience fare increases.
According to FareCompare CEO Rick Seaney, the price hike "is the third domestic fare increase attempt of 2012, and the first since mid-January."
He added that "in over six years, there has never been a Southwest-initiated hike that was not widely matched."
Source:
Business Travel News