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World's big airlines to ask for 5% increase in fares

Major world airlines agreed to ask for a 5 percent fare increase beginning Sept. 1 to offset growing deficits. Air transport sources said over 50 airlines at a meeting of the International Air Transport Association agreed on the recommended increase for all routes except some to South America. They also proposed a 5 percent increase in cargo rates beginning Oct. 1, except for some South and North American routes. IATA agreements do not cover flights between Europe and the US, where the highly competitive market is considered open.

The airlines will also press their governments to reduce airport and navigation charges. IATA member companies last year paid $2.3 billion in landing, passenger service, fueling, security, and navigation charges.

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Financial experts figure IATA companies will lose at least $700 million by the e nd of 1981.

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