Southwest Leads Year’s 20th Set of Fare Increases

By Trebor Banstetter, Fort Worth Star-Telegram, Texas

Jun. 28–Several major carriers, led by discount carrier Southwest Airlines, raised fares for the 20th time this year as the industry continues to struggle with record fuel prices.

Southwest, based in Dallas, increased round-trip prices between $10 and $20, based on the length of the flight, spokeswoman Brandy King said.

“We are up against record-breaking fuel costs and need additional revenue to offset that cost,” King said. The airline faces steep fuel costs despite its hedging program, which allows it to purchase about 70 percent of its fuel at lower prices.

“We’re still paying full price on the other 30 percent,” she said. “We prefer to take modest fare increases instead of instituting fees and hidden charges.”

Southwest’s fare increase goes into effect Oct. 31. That coincides with plans by many carriers to cut their overall capacity, said Rick Seaney, chief executive of FareCompare.com, a Dallas travel firm that tracks airline ticket prices.

He predicted that the reduced capacity will mean higher fares across the industry for the fall.

“Savvy travelers should start shopping now for holiday travel and lock in prices,” Seaney said. “Airline ticket prices are not likely to come down much except for travel on off-peak days of the week.”

American Airlines matched Southwest’s fare increase, spokesman Tim Wagner said.

United, Continental and Delta airlines also raised round-trip fares, according to FareCompare.com. Uni- ted and Continental raised prices $20 to $40, while Del- ta increased fares by $20 to $30.

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