Delta hikes fares - will it stick?

© Delta Air Lines

When you're the nation's third-largest airline with an international route structure, you've got pricing power. Just how much power remains to be seen. Today (Friday, May 11), Delta Air Lines raised domestic United States airfares by $5 each way.

The hike applies to both last-minute “walk-up” fares, and popular advance purchase tickets. Rising jet fuel prices prompted the move. Tried to fill your car lately? Imagine fueling up a 767.

The issue now is will other major airlines follow suit? For airfare increases to stick, the competition has got to match. Last week Continental Airlines tried to raise prices. That effort fell flat.

This time around, the raise could catch on. Fuel prices can exert that kind of collective pressure. Against this backdrop, airlines have made it a point not to loft too many seats, which could depress airfares. Expect flights to be full this summer, with upwards of 80 percent of the seats on any given trip occupied.

© Cheapflights Ltd Jerry Chandler