wow, the prices...

[Andrea]

holly cow i went last week to look up airline tickets from atlanta to our las vegas trip and it went from $303 to over $400 some places over $500

why was there such a big jump that is just crazy

 

[Paticake]

I guess I was lucky I booked Manchester to Las Vegas on SW for 1 way non stop for $79 in Feb. I was really nervous about booking the return when SW released their schedule on Wed. but I was able to get it for $77 with one stop for a grand total of $386 rt for 2. Cheaper than flying to Orlando right now!

 

[bicker]

Crude oil prices hit an all-time high yesterday, so we can expect to see that reflected in substantially higher jet fuel prices, and therefore substantially higher airfares.

 

[Andrea]

Crude oil prices hit an all-time high yesterday, so we can expect to see that reflected in substantially higher jet fuel prices, and therefore substantially higher airfares.

yeah i heard about this on the am sation, i'm just shocked

 

[goofy 28]

holly cow i went last week to look up airline tickets from atlanta to our las vegas trip and it went from $303 to over $400 some places over $500

why was there such a big jump that is just crazy

Do you think it might have something to do with the price of fuel now.

 

[Bo'sMom]

Crude oil prices hit an all-time high yesterday, so we can expect to see that reflected in substantially higher jet fuel prices, and therefore substantially higher airfares.

Not real substantial probably $10-20 round trip. You have to understand that alot of these airlines have hedged themselves against this fuel increase. For example, SW has hedged itself at significantly lower jet fuel prices. I believe they are currently paying $1.46 a gallon. What you're not seeing at the moment are summer sale fares to Florida. Everywhere but. Eventually they will come out. Massachusetts is feeling the departure of Song Air and because it is gone, it means less competition to the other low fare carriers and voila..you have higher fares.

 

[goofy 28]

Not real substantial probably $10-20 round trip. You have to understand that alot of these airlines have hedged themselves against this fuel increase. For example, SW has hedged itself at significantly lower jet fuel prices. I believe they are currently paying $1.46 a gallon. What you're not seeing at the moment are summer sale fares to Florida. Everywhere but. Eventually they will come out. Massachusetts is feeling the departure of Song Air and because it is gone, it means less competition to the other low fare carriers and voila..you have higher fares.

SW usually has a years supply of fuel at their disposal thats why they can keep prices down, but come on anytime they can raise prices and increase profits, they will. and it will cost them more to replace the fuel they presently are using now. so any excuse they can use to raise the price they will.
You are also going into vacation season and they know that, so they will jack it up a bit. I think it's called supply and demand!

 

[lost*in*cyberspace]

SW usually has a years supply of fuel at their disposal thats why they can keep prices down

SWA's fuel hedges are coming to an end very soon and their prices are rapidly increasing.

 

[DebbieB]

So many airlines have been or are currently in bankruptcy. I think I read yesterday that Southwest was the only airline to make a first quarter profit. If they are going to be solvent, they have to decrease operating costs as well as increase revenue.

 

[bicker]

Southwest's long-term fuel hedging contracts will all expire over the next year.

 

[Iluvthemouse]

Southwest is hedged until 2009. I just watched the CEO on tv the other morning. They already have other plans in the making today to extend that date.

 

[Bo'sMom]

Southwest is hedged until 2009. I just watched the CEO on tv the other morning. They already have other plans in the making today to extend that date.

I think they will remain quite competitive over the long haul with their prices even with the surge in fuel prices. If you look at the company over time, making money is important but so isn't customer satisfaction and low prices. That's just the way they operate their company and as a stockholder, I'm glad about that. That philosophy has pretty much kept them solid. I was told recently that the price increases were not due so much to the fuel increases but to the uncertainty about Delta. I think once the Delta situation is cleared up, you will see prices come down to a more competitive level.

 

[Bo'sMom]

Southwest's long-term fuel hedging contracts will all expire over the next year.

No. That's incorrect. They will expire over the next few years according to the CFO. The percentage amount of fuel hedged will decrease as the years go by but do not fully expire for a few more years. They are at least hedged through 2009 and by then the CFO hopes that it won't be necessary to hedge and that prices will have come back down to earth. They are also making a ton of money investing the hedge funds that would have normally been used to pay for the fuel. They are in great shape right now.

 

[Andrea]

i dont think southwest flies out of atlanta...

 

[bicker]

Sorry, I must have remembered it wrong. Thanks for the correction.

 

[keishashadow]

Hoping that the airlines don't try & sneak thru a fuel surcharge to existing res. Heard it discussed earlier today. Don't see how this would be possible since the tix are pre-paid.

Have heard of rental car res. changing dramatically but, reports are that they will honor a printed confirmation $ amount prior to any added surcharge if you stand your ground (?).

 

[DebbieB]

i dont think southwest flies out of atlanta...

They don't, neither does Jet Blue. Delta and AirTran pretty much dominate Atlanta.

 

[Andrea]

They don't, neither does Jet Blue. Delta and AirTran pretty much dominate Atlanta.

have you or anyone else used frontier airlines ? they seem to be the cheapest right now to fly to las vegas with.