May 1--Southwest Airlines has raised fares, and travelers at Dallas Love Field will feel the sting for the first time since the airline expanded its schedule there.
Southwest, which has its headquarters in Dallas, increased prices by $2 each way on flights between 251 and 750 miles, and $1 each way on shorter trips, spokeswoman Marilee McInnis said. It did not lift fares on routes longer than 750 miles.
Unlike other recent fare increases, this price increase will also affect tickets on flights from Love Field. Southwest exempted the airport from other recent price increases after it started selling fares to distant cities, thanks to revisions to the Wright Amendment.
"We've kept our fares very low at Love because we're building a new market there," McInnis said. "But this time, yes, Love is included in the price increase."
Tim Wagner, a spokesman for Fort Worth-based American Airlines, said his airline also raised its prices accordingly.
"It's a very competitive environment," he said. "We're doing our best to deal with the headwinds of increasing fuel costs and everything else."
But it remains to be seen whether the airlines can continue raising prices, at least on flights within the United States.
Some analysts worry that domestic travel demand will be softer than expected this year, after warnings from several airlines.
Declining demand typically means cheaper fares as airlines compete over fewer travelers.
Jamie Baker, an industry analyst with JPMorgan Securities, said there is a "growing body of evidence that domestic [revenue] is neither up to snuff or likely to improve soon" and added, "The industry is ill-equipped to respond quickly."
In a report to investors, Baker downgraded his outlook for several carriers, including American, Continental and United.
Shares of Southwest (ticker: LUV) closed at $14.35, up 6 cents, in trading Monday. AMR Corp. (ticker: AMR), American's parent company, finished at $26.09, down 26 cents.
Airline stocks have dropped substantially since January, when many hoped for a year of robust demand and subsequent profits.
AMR, for example, has seen its shares drop 36 percent since Jan. 19, when the stock briefly topped $40 per share.
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Trebor Banstetter, 817-390-7064
