Air fares rising again
Low-cost US carrier Southwest Airlines has raised its fares again after raising them six times in 2006, the airline says.
The airline’s fare hikes of as much as $10 each way were quickly matched by American, Continental, Northwest and other major US airlines.
Nearly 70% of Southwest’s routes were affected by the fare increase, USA Today reported.
Southwest — the only carrier to report profits in every quarter since the Sept. 11, 2001, attacks — earned $57 million in 2006’s fourth quarter, down from $70 million in the year-earlier period.
JP Morgan airline analyst Jamie Baker said he expected “a full-court press for higher revenue” from Southwest, predicting the rising-fare trend will last several years because of higher labor and fuel costs.
Southwest’s top fare now is $339 one way for a coast-to-coast flight, compared with $299 in January 2005.
This is still lower than the nearly $700 full price one-way coach fare most traditional carriers charge, Bestfares.com Publisher Tom Parsons said.
Report by David Wilkening
David
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