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CNN Live At Daybreak
Fair Fare Hike?
Aired May 13, 2003 - 06:47 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. An airline's fare hike is under government scrutiny.
Susan Lisovicz live in New York with all the details for us.
Good morning -- Susan.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
Well, the government is reportedly looking into the first successful rate hike of the year for the major airlines. At issue is whether making new fare changes that don't affect immediate travel may signal pricing plans to competitors and therefore violate an anti- trust ruling.
Last Thursday, American Airlines raised domestic round trip fares by $10 effective June 1. The other major airlines matched that increase soon after. The airlines have been trying to raise prices, but one reason why they haven't been able to stick is because of falling demand -- Carol.
COSTELLO: Understand.
Hey, will the bombings in Saudi Arabia have any effect on today's markets?
LISOVICZ: Well certainly that's the kind of thing that gives the markets a jolt. We saw that the futures have now come off their lows, and they were at their lows when we saw that 10 Americans were killed. We saw Europe, for instance, decline slightly after it was known that 10 Americans were killed.
But the markets also coming off a couple of terrific days, the Dow and Nasdaq each rose more than 1.4 percent yesterday. Cisco Systems giving tech stocks a boost, jumping 4.5 percent on a brokerage upgrade. And we're watching Wal-Mart today, the world's largest retailer, which is a member at the Dow 30, posting earnings before the opening bell -- Carol.
COSTELLO: You said Wal-Mart. Well that's got to be good, right?
LISOVICZ: Wal-Mart. Well, it just depends on how their -- how their earnings are, I guess, and how they're perceived -- Carol.
COSTELLO: Yes, well I know it's always -- anyway. Thank you, Susan Lisovicz, many thanks to you. LISOVICZ: Sure.
COSTELLO: I was just thinking Wal-Mart seems always packed to me.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM AT www.fdch.com
Aired May 13, 2003 - 06:47 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. An airline's fare hike is under government scrutiny.
Susan Lisovicz live in New York with all the details for us.
Good morning -- Susan.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Good morning, Carol.
Well, the government is reportedly looking into the first successful rate hike of the year for the major airlines. At issue is whether making new fare changes that don't affect immediate travel may signal pricing plans to competitors and therefore violate an anti- trust ruling.
Last Thursday, American Airlines raised domestic round trip fares by $10 effective June 1. The other major airlines matched that increase soon after. The airlines have been trying to raise prices, but one reason why they haven't been able to stick is because of falling demand -- Carol.
COSTELLO: Understand.
Hey, will the bombings in Saudi Arabia have any effect on today's markets?
LISOVICZ: Well certainly that's the kind of thing that gives the markets a jolt. We saw that the futures have now come off their lows, and they were at their lows when we saw that 10 Americans were killed. We saw Europe, for instance, decline slightly after it was known that 10 Americans were killed.
But the markets also coming off a couple of terrific days, the Dow and Nasdaq each rose more than 1.4 percent yesterday. Cisco Systems giving tech stocks a boost, jumping 4.5 percent on a brokerage upgrade. And we're watching Wal-Mart today, the world's largest retailer, which is a member at the Dow 30, posting earnings before the opening bell -- Carol.
COSTELLO: You said Wal-Mart. Well that's got to be good, right?
LISOVICZ: Wal-Mart. Well, it just depends on how their -- how their earnings are, I guess, and how they're perceived -- Carol.
COSTELLO: Yes, well I know it's always -- anyway. Thank you, Susan Lisovicz, many thanks to you. LISOVICZ: Sure.
COSTELLO: I was just thinking Wal-Mart seems always packed to me.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM AT www.fdch.com
