U.S. airlines rolled back much of their recent systemwide fare increases on Monday in a sign that carriers are losing pricing power amid softening demand.
Continental Airlines sparked a broad fare increase last Friday by raising prices $5 each way on all continental U.S. flights. The move was matched by most major airlines, but not by budget carriers like Southwest Airlines.
American Airlines, a unit of AMR, said it partially rolled back the fare hike.
Northwest Airlines and US Airways Group pulled back their hike entirely, while UAL's United Airlines, Delta Air Lines, and Continental scaled back their increases, according to fare analyst Neil Bainton at Farecompare.com.