Southwest Airlines Hikes One-Way Fares up to $10
Southwest Airlines, the leading U.S. low-cost carrier, Tuesday said it raised one-way fares by up to $10 to offset rising fuel costs.
AMR's American Airlines, UAL's United Airlines and Northwest Airlines all said they matched Southwest's move. Other airlines weren't immediately available for comment.
Southwest increased fares on flights of over 1,250 miles $10 each way effective Aug. 31, while it raised tickets on select short- and medium-haul routes by $1, $3, and $5 each way, company spokeswoman Beth Harbin said.
Some analysts expect Southwest, which faces rising costs as its industry-leading fuel hedges gradually unwind, to continue to raise fares, taking pressure off rivals.
"It is increasingly evident that if we are to count on higher oil prices, we can count on Southwest pushing fares higher," said Jamie Baker, an analyst with JPMorgan.
Southwest shares were up 1.2 percent, or 18 cents, at $15.29 in morning trade on the New York Stock Exchange.