The price of air travel continues to rise. Citing rising fuel costs, Southwest Airlines raised round trip air fares as much as $20, triggering similar price hikes by JetBlue, United, Continental, Northwest, American and U.S. Airways.
While motorists have been coping with sticker shock at the gas pump, so have the airlines. Jet fuel prices are up ten percent in just the last three months, according to industry analysts.
In the past, Southwest known for its discount fares has refused to take part when other major airlines have raised ticket prices. Often, these fare increases didnt last long, as the so-called legacy carriers were forced to cut prices once again to keep pace with Southwest.
JetBlue said it would raise fares $5 to $10 after posting its first loss as a publicly traded company. Southwest hasn't had a quarterly loss since 1991 and wants to keep it that way.
Southwest had been on an aggressive growth path as more and more of its competitors were forced into bankruptcy. But in the wake of skyrocketing fuel prices, the carrier recently put some of its expansion plans on hold. Last month it cut some of its more unprofitable routes and reduced the number of non-stop flights.
For years, Southwest has benefited from "hedge" deals it transacted years ago, locking in fuel at low prices. Those deals are expiring and the discount carrier now faces many of the same fuel-price problems as its competitors.
