Days Of Cheap Dings May Be Gone...

[Bo'sMom]

I got a ding this afternoon for $94.00 one way from PVD to MCO. Are they kidding? LOL That is more like an internet fare than a ding.

 

[bicker]

I wonder if that would even cover the fuel, at today's fuel prices.

 

[CarolA]

I have noticed that Dings are higher and have VERY limited dates, like Tuesdays only...

Makes using one to fly to MCO for a weekend of fun difficult!

 

[CarolA]

I have noticed that the Ding rates are higher. (Birmingham had dings for $129 today) And on limited days...(Tuesday and Wed only for example)

SW seems to really be using the technology to sell seats not to make us all happy

 

[rparmfamily]

Just like I have mentioned in a couple prior posts, the fuel that they have pre paid at the extremely low price has almost run out. On the past few flights that I have been on the FA's have been laughing about how SW will have to compete with the rest of the pack now.

Rex

 

[rparmfamily]

Duplicate Post

 

[airline2]

i think it is because of the summer travel season. they can fill seats much easier in the summer compared to the end of January when there is no school vacations.

 

[rparmfamily]

i think it is because of the summer travel season. they can fill seats much easier in the summer compared to the end of January when there is no school vacations.

I might buy that however how can you explain the rest of the fleet having better pricing 90 percent of the routes. There is some cheap fares this summer to MCO and SW isn't one of them at this time.

Rex

 

[tmt martins]

Well I still find SW the cheapest with the most direct flights .

This is important if plans change SW is the easiest to alter flights

 

[kstinw19]

Well...SW may not be cheaper at all starting in 2008. I just read that SW will start assigning seating in 2008. And you know what that means...different seats will be different prices.

Ugh!

 

[NotUrsula]

I just read that SW will start assigning seating in 2008.

Not exactly accurate. What SWA has actually said is that they are CONSIDERING assigned seating, and are upgrading their reservations software to allow for it, but that *if* they decide to do it, that they would not be able to put it into practice until 2008 at the earliest.

Thinking about it and actually doing it are far from being the same thing. SWA has *considered* going to assigned seating several times over the past 20 years or so, but they have always decided against it. This time their decision may be different, but personally, I'd advise against counting on it.

FWIW, I *really* hope they decide against it again. I really prefer the open seating system, because it puts me in control of where I sit.

 

[Bo'sMom]

Just like I have mentioned in a couple prior posts, the fuel that they have pre paid at the extremely low price has almost run out. On the past few flights that I have been on the FA's have been laughing about how SW will have to compete with the rest of the pack now.

Rex

They really aren't that close to running out. As a SW stockholder we get periodic updates about their financial status, and they are currently hedged through 2009. I actually think its because of the increase in summer travel. The news has been very clear that people are not staying put this summer and instead of driving, are flying to their destinations. SW is taking full advantage of the increase in summer travel, the labor issues with Delta, and the increase in jet fuel, to charge as much as they can for flights. Oh well.

 

[iluvepcot]

I think SW does not need to offer dings. People are booking at the higher rates and waiting for credits now. Since they already have people at the higher rate, why should they offer a ding. From PHL Airtran is having a sale and is cheaper then SW for August. BUT SW has more NS flights and schedules. The SW prices are higher but not by much. So I guess I'll be joining those booking at the higher rates. Now if Airtran were to offer something like the $49 rate, even with the lack of NS, I might book with them.

 

[rparmfamily]

They really aren't that close to running out. As a SW stockholder we get periodic updates about their financial status, and they are currently hedged through 2009. I actually think its because of the increase in summer travel. The news has been very clear that people are not staying put this summer and instead of driving, are flying to their destinations. SW is taking full advantage of the increase in summer travel, the labor issues with Delta, and the increase in jet fuel, to charge as much as they can for flights. Oh well.

The fact of the matter is they may be hedged till 2009 but since last year they increased the barrell of crude to $32 from $26 and next year it will increase another 20 Percent and if you take a look at the Subcommittee on Aviation Hearing on Current Situation and Future Outlook of U.S. Commercial Airline Industry you will see that Southwest really doesn't hold a significant advantage in regards to the fuel anymore and that's a good reason for price increases.(higher fuel costs) I would ask for a more in depth financial analysis if you are investing imho.

"Even the most successful low cost carriers are likely to run into difficulties on the hedging front in the short-term. With oil prices so high for so long, no investment bank is willing to cover $26 barrels of oil for anyone, no matter how much cash the airlines can put up front. As a result, only Southwest will have fuel hedges in place in 2009, but just 30 percent of its total fuel requirements at $39 per barrel." This means that the other 70 percent are being paid at the market price along with the other airlines.


Rex

 

[TDC Nala]

yeah, no more dings here, unless you want to travel on a Tuesday or Wednesday.

Airtran has a sale now for my October trip. $89 each way. I will probably wait and see what SW has when they open up. I can't change the Airtran flight and my return is on a Wednesday so I could still get a ding for that one.

 

[Bo'sMom]

The fact of the matter is they may be hedged till 2009 but since last year they increased the barrell of crude to $32 from $26 and next year it will increase another 20 Percent and if you take a look at the Subcommittee on Aviation Hearing on Current Situation and Future Outlook of U.S. Commercial Airline Industry you will see that Southwest really doesn't hold a significant advantage in regards to the fuel anymore and that's a good reason for price increases.(higher fuel costs) I would ask for a more in depth financial analysis if you are investing imho.

"Even the most successful low cost carriers are likely to run into difficulties on the hedging front in the short-term. With oil prices so high for so long, no investment bank is willing to cover $26 barrels of oil for anyone, no matter how much cash the airlines can put up front. As a result, only Southwest will have fuel hedges in place in 2009, but just 30 percent of its total fuel requirements at $39 per barrel." This means that the other 70 percent are being paid at the market price along with the other airlines.<<<



I'm not sure where you got those figures from, but mine are direct from the company. They state "that 65 percent of its expected 2006 fuel purchases are capped at $32 a barrel levels, while more than 45 percent of its needs for 2007 will cost a maximum of $31 per barrel. Only 30 percent of its planned 2008 fuel purchases are now locked in at $33 per barrel; while 25 percent in 2009 is capped at $35 per barrel. "

He has always stated that modest fare increases of $1-$3 per segment were going to have to be implemented in order to offset the increase in fuel, however, he is hopeful that the hike in fuel prices will not be long term. Demand issues on the other hand may be long term and SW has definitely benefitted from them. The demise of Independence Air on the East Coast, the labor issues with Delta and the strong travel forecast for the summer are all responsible for the much higher than expected fare increases.

 

[rparmfamily]

The fact of the matter is they may be hedged till 2009 but since last year they increased the barrell of crude to $32 from $26 and next year it will increase another 20 Percent and if you take a look at the Subcommittee on Aviation Hearing on Current Situation and Future Outlook of U.S. Commercial Airline Industry you will see that Southwest really doesn't hold a significant advantage in regards to the fuel anymore and that's a good reason for price increases.(higher fuel costs) I would ask for a more in depth financial analysis if you are investing imho.

"Even the most successful low cost carriers are likely to run into difficulties on the hedging front in the short-term. With oil prices so high for so long, no investment bank is willing to cover $26 barrels of oil for anyone, no matter how much cash the airlines can put up front. As a result, only Southwest will have fuel hedges in place in 2009, but just 30 percent of its total fuel requirements at $39 per barrel." This means that the other 70 percent are being paid at the market price along with the other airlines.<<<



I'm not sure where you got those figures from, but mine are direct from the company. They state "that 65 percent of its expected 2006 fuel purchases are capped at $32 a barrel levels, while more than 45 percent of its needs for 2007 will cost a maximum of $31 per barrel. Only 30 percent of its planned 2008 fuel purchases are now locked in at $33 per barrel; while 25 percent in 2009 is capped at $35 per barrel. "

He has always stated that modest fare increases of $1-$3 per segment were going to have to be implemented in order to offset the increase in fuel, however, he is hopeful that the hike in fuel prices will not be long term. Demand issues on the other hand may be long term and SW has definitely benefitted from them. The demise of Independence Air on the East Coast, the labor issues with Delta and the strong travel forecast for the summer are all responsible for the much higher than expected fare increases.

I got my data from the Airline Transport Association. Maybe there numbers are skewed because if the CEO of SW is putting this out to you then it is probably correct and his honesty and integrity would be on the line for false information. Thanks for the additional data!!!

Rex

 

[deltachi8]

Industry wide, demand is up, available seats are down. Supply/Demand laws dictate higher prices, generally speaking, in this situation.

 

[iluvepcot]

We as consumers need to remember our responsibilty towards the cost of goods. Oil is not the only driver of air fare. As stated above, demand contributes to the cost. SW is the only airline that offers a credit. I know I would never book on the other airlines and hope they lower the price. As long as they sell the fare at the higher rate, no matter what the cost, they are not likely to offer a ding.

Look at the codes and rooms situation with Disney. There are less codes to the GP or AP holders etc. because people are booking the rooms and then waiting for a code. Why would disney need to offer a code if all the rooms are booking at rack?

Again, at the pumps, people still continue to buy the SUV's and drive themselves to work. Until we start to consume less gas and start to take public transportation, they will be slower to respond to our needs on both fronts.

The consumer has more power then we use.. Ok, I'm off my little soap box... sorry about the rant.

 

[DrTomorrow]

Bo'sMom - you are right. rparmfamily is mixing apples and oranges and backtracking.

First, rparm said:

the fuel that they have pre paid at the extremely low price has almost run out. On the past few flights that I have been on the FA's have been laughing about how SW will have to compete with the rest of the pack now.

The italicized words suggest that soon SWA will be paying market prices (competing with the rest).

However, once challenged, rparm said:

Southwest will have fuel hedges in place in 2009, but just 30 percent of its total fuel requirements at $39 per barrel.

While this agrees with what you said "while 25 percent in 2009 is capped at $35 per barrel" (actually, rparm's 30% is higher than your 25%), it has nothing to do with what SWA is charging in 2006, three years before 2009.

So, while obviously, as fuel prices go up over time, the price available via hedging will go up as well. However, SWA is not "running out of fuel", and 2009 is meaningless to today's pricing schemas. Plus, SWA still has more hedging than most other carriers.

We love SWA as well - own some shares (true LUV), true, but we're much happier living in PHX and flying SWA than we were in Detroit flying Northworst.

Be well!