By Mark Huffman
ConsumerAffairs.com
July 6, 2006
Rising fuel prices have prompted Southwest Airlines to raise ticket
prices for the fourth time this year. The discount carrier said fares
will go up no more than $20 on roundtrip tickets.
Each time Southwest has raised prices this year, other airlines have quickly fallen into line. United, Delta and Continental said they would match the increase on routes where they compete with Southwest.
The fare hike is based on the length of the flight, with the increase as little as $3 each way on the shortest routes. Southwest also upped the price of its lowest-priced one-way walk-up fare, from $309 to $319.
Each time Southwest has increased ticket prices, it looks less and less like a discount carrier.
A comparison with other "legacy" airlines shows Southwest fares are more closely matching their competitors, especially as Southwest reduces the number of seats set aside for its lowest fares.
The Washington Post quotes industry analysts who point to the January collapse of Independence Air as the end of the true discount airline. Airlines have be steadily raising fares ever since to cope with the costs of fuel.
Analysts also say airlines have been able to raise fares because of continued strong customer demand. Higher ticket prices have not reduced the number of passengers.
