Air fares on domestic flights for most scheduled airlines will rise between 1 and 3 per cent on Friday as a result of a Civil Aeronautics Board action yesterday.
Board members viewed the fare increases they authorized yesterday, the second in as many months for the most airlines, as the second and final phase of a transition to a new policy which will recognize anticipated costs in exchange for fewer fare increase filings by the airlines.
Unless there are extraordinary events requiring CAB fare action. the board expects the airlines to live with the new fares until next April.
Under a previous board decision. most airlines had implemented fare increases of 1.8 to 2 per cent on October 1. Yesterday's decision allows them to increase their fares to alevel that is 2 per cent above the fares in effect before the Oct. 1 increase. For most airlines. this means increasing fare 1 to 1.2 per cent above the pre-Oct.1 level.
Two airlines - Delta Air Lines and Northwest Airlines-did not rise their fares in October and will be entitled to rise them full 3 per cent on Friday. A third airline-Hughes Airwest-did not ask for an increase over and above that permitted in October.
Most passengers already holding tickets for flights Friday and after will not be charged extra for the increase. A United Airlines proposal accepted by the CAB this summer and matched by many other airlinesguarantees customers the fare in effect on the day they bought their tickets.
The fare increases approved yesterday apply to scheduled flights within the 48 contiguous states and the District of Columbia. A CAB spokesman said yesterday discounted excursion fares may go up if the airline bases them on a percentage of the normal coach fare.
The boards policy is to approve an across-the-board proposed fare increase if the econonmic evidence suggests it would give the industry as a whole the apportunity to earn the allowed 12 per cent return on investment. Board sources say yesterday's increase, based on projected costs to January 1, 1978, would result in an 11.95 per cent return on investment.