The Return Of Pricing Power
Continental Airlines Inc. took the first big step in February, when it tacked on a $20-per-trip surcharge, blaming higher fuel costs. Most of the industry followed fast. Then, in March, Northwest Airlines Corp. hiked fares some $20 to $40 round-trip. Again, rivals are following suit. "Our planes are full, so our prices are not too high," Continental chief Gordon M. Bethune argues drily. Over at rival AMR Corp., Chief Financial Officer Thomas W. Horton adds: "There's more pricing power clearly in industry right now."
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.