Newspaper article THE JOURNAL RECORD

United Airlines Fare Raise Gains Support

Newspaper article THE JOURNAL RECORD

United Airlines Fare Raise Gains Support

Article excerpt

NEW YORK _ The attempt by United Airlines to raise domestic air fares got support Friday from USAir, which said it would go along with a 2 percent across-the-board increase. "We do plan to adopt that change, probably tomorrow," USAir spokeswoman Susan Young said late Friday afternoon.

"We feel it's an appropriate step." But in what seems like a repeat of the events leading up to a similar fare increase last month, Trans World Airlines indicated a reluctance to go along. Other big carriers, including American, Delta, Continental, Northwest and America West, said they were still studying the move, which would be the second fare increase this year if it succeeds.

The first one got under way when United said late last year it wanted to raise prices by 2 percent, trying to make up for heavy losses that have been blamed partly on too many fare sales. Most airlines liked United's plan and said they, too, would push up the cost of tickets. TWA became the holdout.

However, after proclaiming publicly it wanted to keep prices down for the benefit of travelers, TWA eventually reversed course and the fare increases were imposed in January, albeit a little later than United and the others had foreseen.

Mortgages Highest in Four Months WASHINGTON _ Thirty-year, fixed-rate mortgages averaged 8.82 percent this week, the highest in four months, according to a national survey released Friday by the Federal Home Loan Mortgage Corp. The rate was up from 8.73 percent last week and the highest since mortgages averaged 8.91 percent during the week ending Oct. 25. Rates have been rising since dropping to 8.23 percent during the week ending Jan. 10. On one-year adjustable rate mortgages, lenders were asking an average initial rate of 5.92 percent, up from 5.78 percent last week. The rates do not include add-on fees known as points.

Veterans Loan Rate Raised to 8.5% WASHINGTON _ The Veterans Affairs Department announced Friday it was raising the maximum interest rate on VA mortgages to 8.5 percent. The VA said the one-half percentage point increase from 8 percent would become effective for new mortgages it guarantees beginning Monday. …

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