Carriers Follow Lead on Fare Increases

U.S. airlines, including UAL Corp.’s United Airlines, the world’s largest carrier, raised domestic leisure fares 4% in the industry’s third increase this year, driving most airline stocks higher. Northwest Airlines Corp., the No. 4 U.S. carrier and a frequent holdout, had matched Friday’s move by Continental Airlines Inc. That set the stage for increases by United, AMR Corp.’s American Airlines, Delta Air Lines Inc., US Airways Group Inc., Trans World Airlines Inc. and America West. Most airline shares rose, led by a 4.1% gain for Continental and 3.4% for AMR. With the latest hikes, which do not affect business-class tickets, domestic leisure fares have risen 11% this year. On the NYSE, AMR’s shares rose $2.19 to close at $67.25; Continental climbed $1.75 to $41.19; Delta was up $1.56 at $58.94; US Airways gained 81 cents to $49.38; America West added 25 cents to $19.75; and UAL slid 75 cents to $66.50. Northwest rose 75 cents to $34 on Nasdaq, and TWA was off 6 cents at $5.13 on the American Stock Exchange.