United’s Price Increase Rolled Back

By Author: Steve Robinson
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In what is good news for cheap airplane tickets and cheap vacation packages United Airlines first attempt of 2013 to raise its ticket prices failed.

United has withdrawn its system wide fare hike that initially applied to over one million United ticket prices though kept a $10 one way increase on flights to Alaska and Hawaii.

On Thursday, January 3rd, United and its partner Air Canada increased ticket prices system wide by $2 to $5 each way for all fares depending on the length of the flight. Prices rose $2 each way on short haul flights below 500 miles, $3 each way on flights between 500 and 1,000 miles, and $5 each way on long haul domestic routes.

Delta Air Lines quickly matched the higher prices. However other airlines did not follow particularly low cost carriers.

Air Canada refused to comment on its fare increase but observed that fares are dynamic and subject to change at any time in order for it to remain competitive. Air Canada acknowledged that industry consensus is necessary for fare increases to stick.

Air Canada expects to see modest price increases of domestic ticket ...
... prices in the first half of the year as well as a reduction in promotional sale activity. Continued industry supply discipline has made recent price increases more likely to be successful.
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