Alex, Yes, it is still used in modern English. A recent editorial from an American newspaper: How fares Obama's multi-tasking? CSM Feb 2009

"How fares it?" cannot really mean "How did it turn out?" You CAN say "It fared badly with him," meaning things turned out crappy for him, but 'fares' implies that whatever action (or condition) you're inquiring about is still going on at the moment you're asking -- it's just the 'how' which prompts to qualify it. Much like "How goes it?" is entirely different from "How did it go?"

Hi, another way would be to say, 'how goes it?'or 'how are you doing?'

Hello Alex , Verb 'to fare' with 'it' as a subject means to turn out or happen as specified. "How fares it ? " = How did it turn out ? The answer could be " It fares good ( or bad ...etc). The verb 'to fare' has some archaic meanings.

Hi Alex, Apparently it comes from an old English word 'faer', meaning road or journey. So in a way, you're asking how someone is travelling, or how an event 'travelled'. I was also thinking of the French 'faire' and Italian 'fare' (= to do, to make) but seems I was misled?