mickey2000
Pin trader
- Joined
- Jan 2, 2000
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What will be problematic for Southwest and the rest of the industry is the skyrocketing cost of aviation fuel as oil has shot up from about $70 a barrel last year to more than $100. Fuel costs will be $1 billion higher for Southwest this year compared with last year, said Jordan, the Southwest executive.
Airlines have been raising prices the past several months to pay for their fuel bills. Southwest led some of those fare hikes, raising prices five times between December and last month, according to a report this month by J.P. Morgan analyst Jamie Baker.
"They are charging at least 20 percent more on some routes than they were last year because of (seat) capacity cuts and higher fuel costs," said Parsons of Bestfares.com. "Southwest is in the business of making money, and if they have to pay higher fuel costs, they will pass that on to consumers."
Airlines have been raising prices the past several months to pay for their fuel bills. Southwest led some of those fare hikes, raising prices five times between December and last month, according to a report this month by J.P. Morgan analyst Jamie Baker.
"They are charging at least 20 percent more on some routes than they were last year because of (seat) capacity cuts and higher fuel costs," said Parsons of Bestfares.com. "Southwest is in the business of making money, and if they have to pay higher fuel costs, they will pass that on to consumers."
