Latest Airfare Hike Unravels

Legacy carriers today rescinded a briefly successful $5 one-way fare increase, but analysts expect more successful ones to come in the approaching weeks.

"We would expect another, largely similar industry effort within coming weeks," said JP Morgan airline analyst Jamie Baker in a research note Monday. United on Friday initiated the move by raising domestic fares by $5 "in nonstop and connecting markets exceeding 1,000 miles, excluding Southwest-competitive markets," Baker said in a research note.

The hike, however, unraveled as American and Delta moved to "broaden the scope of the effort," Baker noted. "As of mid-day, American, Delta and US Airways have rescinded the majority of their increases, with Continental, Northwest and United expected to do the same by day's end."

This year's first effort among legacy carriers to boost fares came earlier this month, with a $5 one-way increase, also led by United. The increase followed 10 such increases in 2006, Baker said.