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Southwest raises some fares, rivals follow

4 January 2007

Several major US airlines said on Wednesday they had at least partially matched a limited fare increase last week by low-cost carrier Southwest Airlines.

The increase, which comes on the heels of a broader fare increase by carriers earlier in December, points to airlines’ expectations of healthy demand and supports analysts’ generally upbeat outlook for the industry this year.

Southwest said high fuel prices necessitated the December 29 fare increase, which affects about 25 percent of the carrier’s passengers. “‘We are still very much in a high fuel environment,'” said Southwest spokeswoman Beth Harbin.

source: Airwise

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