Southwest Has Competition
Rivals Match Southwest Fare Hike
U.S. air carriers increased fares after Southwest Airlines boosted its one-way ticket prices by as much as $10 over the weekend, citing higher fuel costs. Southwest hiked fares by $1, $3 and $5 in select short and medium-haul markets. It was the low-cost carrier’s fourth fare increase this year, and other airlines quickly followed suit.United Air Lines, a unit of Chicago-based UAL Corp., matched the increase in markets where it goes head to head with Southwest. US Airways Group Inc., Northwest Airlines Corp. and Delta Air Lines Inc. also matched the fare increase. Rising fuel costs are among the problems the industry still faces as it emerges from several years of difficult losses. Southwest, the only major U.S. carrier to remain profitable through the recession and terror attacks of 2001, has said that fuel-hedging contracts will save it money. Let’s hope so.
