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Extra fuel surcharge canceled

Tuesday, Jan. 20, 2004 | 11:20 a.m.

AMR Corp.'s American Airlines, UAL Corp.'s United Airlines and Continental Airlines Inc. canceled a $6 roundtrip fare increase after some rivals declined to match the move. American rolled back the increase Sunday, three days after trying for a second time this month to boost fares.

American, the world's largest carrier, had called the increase, put in place on Thursday, a "surcharge" and said it was part of an effort to offset rising fuel costs, which are the industry's second-biggest expense. The increase was in addition to the major airlines' existing $20 roundtrip surcharge.

"Although we think that current fuel prices warrant an increase in the fuel surcharge, we need to be competitive in the marketplace," AMR Spokeswoman Jacquie Young said in an interview.

Delta Air Lines Inc. and Northwest Airlines Corp. didn't match the increase, while United and Continental had followed suit, said Tom Parsons, who monitors prices for online travel agent Bestfares.com.

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