US airlines raise domestic fares 

Source: Reuters

Travellers will have to dig deeper into their pockets to fly on US airlines.
   
Major US carriers have matched a domestic fare increase initiated by American Airlines, marking the fifth industry-wide fare hike in 2009, a top analyst said.
   
The $US10 round-trip increase is the second hike in two weeks as carriers struggle for pricing power during the economic downturn, said Rick Seaney, chief executive of Farecompare.com.
   
"Airfare hikes that are matched this quickly by all network airlines rarely fail and are rolled back," Seaney said in a research note.
   
Seaney said he is waiting to see if low-cost carriers like Southwest Airlines and AirTran Airways also match the increase.
   
The airline industry has been battered in recent years by low-fare competition and volatile fuel prices.

The economic recession that started in 2008 has eroded travel demand and forced carriers to slash capacity.
   
Airline executives said this week that they have seen signs of returning demand. Increased demand could give carriers a foundation for more fare hikes.
  
Seaney said there were 15 fares hikes initiated and broadly matched by US carriers in 2008 and 17 such increases in 2007.