Air Fares Climb as Delta Blinks

Delta Air Lines' (DAL Quote) decision to raise its highest fares received a warm reception from its rivals, who are hungry for ways to boost revenue in a bruising industry environment.

After Delta Thursday lifted its highest fares by $100 one-way, to $599 on economy tickets and $699 for first class, other carriers quickly jumped on board. By Thursday night, American Airlines' parent AMR (AMR Quote), Continental (CAL Quote), Northwest Airlines (NWAC Quote), US Airways (UAIRQ Quote) and UAL's (UALAQ Quote) United Airlines had matched Delta's move.

The industry increase on last-minute walk-up fares, typically purchased by business travelers, will certainly boost revenue, analysts say. But the benefit won't come close to offsetting the effect of high oil prices. Nor will it significantly improve the odds that Delta will be able to avoid bankruptcy. ...