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U.S. probing possible price-gouging by airlines after rail crash

WASHINGTON (Reuters) - U.S. authorities are investigating possible price gouging by four U.S. airlines while train service was disabled between New York and Washington after a deadly Amtrak crash in Philadelphia in May, the Transportation Department said on Friday.

Transportation Secretary Anthony Foxx said the investigation involved Delta Air Lines Inc , American Airlines Group Inc , Southwest Airlines Co and JetBlue Airways Corp in the Northeast Corridor.

"These airlines have allegedly raised fees beyond what you would ordinarily expect in the Northeast Corridor at a time when the Amtrak line was shut down," Foxx told reporters at a breakfast sponsored by the Christian Science Monitor news organization.

The Justice Department said earlier this month it was investigating whether airlines worked together illegally to keep fares high by signaling plans to limit flights.

Eight people were killed and more than 200 injured in the Amtrak derailment in May. Amtrak traffic between Washington and New York City was shut down for six days as a result.

Foxx said the investigation being launched on Friday comes after Democratic Senator Chris Murphy of Connecticut contacted the Obama administration about his concerns.

"There were a flurry of concerns raised in the wake of the accident in Philadelphia," Foxx said. He said letters were sent to the four air carriers requesting information. He did not say how long the investigation would take.

American Airlines spokesman Josh Freed said the airline was cooperating with the Transportation Department and expected there would be no finding of wrongdoing by the airline. "In response to the Amtrak derailment, we added capacity and our fare structure remained the same," he said.

JetBlue and Southwest also said they would co-operate with the investigation. Delta did not immediately return a request for comment.

(Reporting by Richard Cowan in Washington and Jeffrey Dastin in New York; Editing by Bill Trott, Doina Chiacu and Bill Rigby)

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