Southwest Boosts Round-Trip Airfares

Oct. 16, 2012
Carrier has sparked what looks to be the seventh successful increase in fares this year to destinations inside the U.S. by reviving an increase that had sputtered last week

Southwest Airlines has sparked what looks to be the seventh successful increase in fares this year to destinations inside the U.S. by reviving an increase that had sputtered last week.

Southwest raised fares $4 to $10 round trip, depending on the length of the trip, according to fare-tracking site FareCompare.com.

And many other airlines have followed with similar increases.

United had filed for a comparable price boost earlier last week, then rolled it back on Thursday when other major carriers other than Delta refused to follow.

But Southwest Airlines often sets the pace when it comes to increasing airfares. Few carriers want to be seen as charging more than Southwest, which carries the most domestic traffic.

When Southwest came in Friday with its boost, it revived the United effort to raise fares.

"We matched the fare increase on Friday from our competitors in the wake of rising costs," Southwest spokesman Chris Mainz said Monday.

United's price hike last week -- now driven by Southwest's increase -- was the 14th attempt by U.S. airlines to raise fares this year, as they've sought to deal with volatile jet fuel prices and post profits.

Of those attempts, six have stuck. This would be the seventh, according to Rick Seaney of FareCompare.com. Southwest has sparked five of the increases.

Last year, airlines tried to boost ticket prices 22 times. Nine of those attempts succeeded.

The industry has said past increases were necessary to offset the volatile cost of fuel.

Airlines have had leeway to charge more since they've cut back on flights and seats in an effort to make sure their planes are flying full in a move to make an often-elusive profit.

Despite the round of increases this year, some analysts say they don't expect travelers to be deterred from flying.

"I don't think a $5 or $10 increase is something that in most markets is going to make demand drop off significantly," said Kevin Schorr, vice president of Campbell-Hill Aviation Group, an airport and airline consulting firm.

"If you take into account inflation, airfares are at the cheapest level they've ever been -- including all the fees."

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