hr: Money

Second-largest U.S. carrier United Airlines has raised domestic airfares by 3 to 5 percent Thursday to cope with soaring fuel costs. This is the airline’s third attempt to jack up the fare in just over two weeks, which may encourage other airlines to follow suit.

The increase, which applies everywhere in the U.S. except to and from Hawaii, is “part of our effort to pass on increases in our commodity costs that will help offset the significant and rapid rise in fuel,” said United spokeswoman Robin Urbanski.

The move comes just two days after Delta Air Lines Inc. Chief Executive Richard Anderson said domestic carriers need to raise tickets 15 to 20 percent just to break even at existing fuel prices. United parent UAL Corp., Delta and other major carriers reported billions of dollars in combined quarterly losses in recent days.

“This is the most challenging financial period in the history of the industry, just at the same time we have this unprecedented surge in jet fuel prices with no end in sight, we’re bumping up against a weakening economy,” said John Heimlich, chief economist of the Air Transport Association.

No other carrier immediately announced it was following suit. American Airlines, the nation’s largest carrier, and Southwest said they were evaluating the move.

United’s corporate parent earlier this week said it lost $537 million during the first three months of the year because of increased fuel costs. The carrier called the current environment “extraordinarily difficult” for airlines, and said it planned to cut flights and slash 1,100 jobs in an effort to cut costs.

The loss was worse than investors had been expecting, and the company’s shares shed a third of their value in a matter of hours. A rally among airline stocks Thursday won back only a fraction of those losses.

UAL shares rose $1.45, or 10.4 percent, to close at $15.40.