Major Airlines Hike Fares to Recoup From Discounts

Major U.S. air carriers, following the lead of United Airlines, are raising one-way fares on first-class and coach tickets to compensate for revenue losses attributed to discounts introduced this past winter.

The fare increases, which range from $5 on a military personnel ticket to $15 for first class, are widely viewed as a move by the airlines to recoup losses they sustained from the “MaxSaver” super discount fares introduced in January. Those fares give discounts of as much as 80% from regular coach fares and require only a two-day advance purchase.

Additional fare increases could be in the offing, or the MaxSaver fares could even be scrapped next month by the hard-pressed airlines, observers said Thursday.

The fare increases, all applied to one-way tickets, are: $15 for first class, $10 for coach, $5 for military personnel and $10 for discount unrestricted fares available at off-peak hours.

The fare increases, due to take effect Saturday, will be made by major airlines including the nation’s largest carrier, Texas Air Corp., which owns Eastern Airlines, Continental Airlines and other carriers; American Airlines; Delta Air Lines; Northwest Airlines, and Trans World Airlines.

Second-ranked United instituted the fare hikes in an effort to recover rising costs, especially for fuel, said Dan Sheehy, media relations manager at United’s headquarters in Chicago. The carrier’s fuel costs have jumped about 10% from the second half of last year through the first quarter of 1987, he said.

But others put the blame squarely on the effect of the MaxSaver fares, viewing the move as a way to offset losses from the discounted fares by charging more for business travelers and other full-fare passengers.

“Most airlines have found that the discounted fare levels have not compensated for the cost of providing seats for passengers,” said Robert Gibbons, a spokesman for Northwest.