Feds Probe Possible Price-Gouging by Four Airlines
The U.S. Transportation Department is investigating possible price gouging by the five biggest U.S. airlines while train service was disabled between New York and Washington following a deadly Amtrak crash in May, it said Friday.
The regulator sent letters on Friday asking each carrier to detail average fares along the route before, during and after the crash. It demanded an explanation for price increases, if any, and asked the airlines whether they communicated with each other about those fares, which might signal collusion.
The review involves Delta Air Lines (DAL), American Airlines Group (AAL), United Continental Holdings (UAL), Southwest Airlines (LUV) and JetBlue Airways (JBLU), all of which said they were cooperating with the probe.
These airlines have allegedly raised fees beyond what you would ordinarily expect in the Northeast Corridor at a time when the Amtrak line was shut down.
American and United added they were confident that no wrongdoing would be found, while Delta said it didn't increase prices but instead lowered some of its highest fares by nearly 50 percent following the crash.
