Air carriers retreat from fare increases

DALLAS — Another round of airline fare increases, driven by rising fuel prices, faltered Monday as two carriers backed down.

Analysts said the two carriers, Delta and Continental, could still reinstate their increases. Several other carriers still had the higher fares in effect Monday.

Despite Monday’s retreat by the two carriers, the overall direction of fares is clear — up. Northwest has led two successful rounds of increases.

The big carriers, however, avoided raising fares on some routes where they compete directly with low-cost carriers such as Southwest Airlines Co. And even when they do raise fares, airlines aren’t doing so on every route or each type of ticket.

Airlines say they must raise prices to offset rising fuel costs, a key factor in massive industry losses.

U.S. carriers spent an estimated $6 billion more for fuel in 2004 over 2003, and analysts have grown more pessimistic about the industry’s outlook as prices have continued to climb.