Delta Rescinds Fare Hike When Rivals Balk

Delta Air Lines Inc. dropped a 3% fare increase after several competitors refused to hike their prices, putting pressure on three major rivals to rescind similar increases over the last week. AMR Corp.’s American Airlines, which started the price hikes Monday, said it was sticking with the increase, a spokeswoman said. American, the No. 2 carrier, cited higher fuel costs for the price increase. Representatives of UAL Corp.’s United Airlines, the nation’s largest carrier, and Continental Airlines Inc. declined to comment on pricing actions or whether their increases would stay in effect. Northwest Airlines Corp., Trans World Airlines Inc., US Airways Group Inc. and America West Airlines--had refused to hike their prices, prompting Delta’s quick retreat. “If the market doesn’t dictate an increase, we have to remain competitive,” said Dan Lewis, a spokesman for Delta, the No. 3 carrier.