US probes airlines for collusion

US probes airlines for collusion

The US Justice Department says it is investigating some airlines over “possible unlawful coordination.”

There was no mention of which airlines were covered in the probe in Wednesday’s announcement, but reports of it sent the shares of major US carriers tumbling on Wall Street by more than two per cent.

The investigation came after a period in which domestic flight ticket prices have steadily risen despite the plunge in fuel prices, a major cost to airlines.

Prices were up two per cent last year despite crude prices falling by half, according to Department of Transportation statistics.

In addition, according to the department’s data, available seat miles on US carriers remain significantly below the peak in late 2007, before the economic crisis.

Asked about reports of the probe, a Justice Department spokesperson would only say: “We are investigating possible unlawful coordination by some airlines.”

Shares of Delta Air Lines fell 2.7 per cent, American Airlines 2.5 per cent, United Continental 2.9 per cent, JetBlue 2.9 per cent, Southwest 2.2 per cent and Hawaiian Airlines 4.3 per cent.

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