U.S. Transportation Dept. Probes Airline Price Gouging Concerns

The Transportation Department is investigating possible price gouging by four airlines in the wake of an Amtrak derailment in May, Secretary Anthony Foxx said.

The airlines are Delta, American, United, Southwest and JetBlue.

The agency is sending information requests to the airlines today to begin determining "whether in fact the airlines drove up prices in direct response to this incident and created a challenge for consumers."

Mr. Foxx said the department has authority to investigate unfair trade practices by airlines and put a stop to them. The inquiry is focused on the time period immediately following the derailment in the Philadelphia area. The investigation is looking into the impact on prices in the Northeast corridor.

The investigation was requested by Sen. Chris Murphy (D., Conn.), Mr. Foxx said. In a letter, Mr. Murphy asked the government to probe "price spikes" that followed the May derailment and "ensure that they were not attempts by airlines to make money off of desperate travelers who were impacted by the tragedy."

Mr. Foxx made the remarks at a Christian Science Monitor breakfast.

Write to John D. McKinnon at [e-mail]

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