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Airlines raise fares on many US routes
29 December
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Cleveland: On Tuesday, Several airlines confirmed that they are raising prices on many domestic routes by $10 one way and $20 per round trip, even as snowbound passengers remained stranded at New York City-area airports.

United, Continental and Delta said they're raising prices effective immediately. Southwest did not immediately go along with the higher prices, which raised the possibility that the other airlines might back down, FareCompare suggested.

The airlines posted strong profits in the third quarter, and traffic has been running higher than a year ago as travel demand slowly recovers from the recession. They didn't offer a reason for the fare hikes.

But FareCompare noted that they are facing rising fuel costs. Oil prices have climbed this year and analysts predict they will rise again in 2011 due to strong demand from developing countries such as China and India.

Many passengers on canceled flights are rebooking, but the airlines are likely to lose some revenue to passengers who instead request refunds. An analyst for Dahlman Rose & Co. estimates that the industry could lose $100 million in revenue from this week's cancellations.

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