Yesterday I noted the lowest fares on JetBlue might soon be a lot harder to come by. The news gets even worse today. The nation’s other low-fare darling, Southwest, says it’s facing about $600 million in higher fuel costs this year. And, says Laura Wright, Southwest’s chief financial officer, “We’re going to have to see revenue improvement to cover those fuel costs.”
The airline isn’t coming right out and saying it will raise prices, but airline specialist Terry Trippler of Cheapseats.com says he expects Southwest to go even further than the $2 to $3 increase it established earlier this year. Trippler predicts an industrywide increase in leisure travel prices of about 10 percent this year.
For its part, Southwest says it plans to continue its expansion (about 30 new planes this year). Financially it’s also in better shape than JetBlue: Southwest actually made money in 2005, to the tune of $548 million net income. That’s up 75 percent year-over-year.
As with JetBlue, I expect we’ll still see those dazzlingly low prices on most routes. There just won’t be as many seats available at those rates. And that’s all the more reason to shop around before you book.
We hand-pick everything we recommend and select items through testing and reviews. Some products are sent to us free of charge with no incentive to offer a favorable review. We offer our unbiased opinions and do not accept compensation to review products. All items are in stock and prices are accurate at the time of publication. If you buy something through our links, we may earn a commission.
Top Fares From
Today's Top Travel Deals
Brought to you by ShermansTravel
Kenya: 14-Night Tour, Incl. Tanzania &...
smarTours
vacation
$7125+
7-Night Caribbean Round-Trip Cruise From Orlando:...
Norwegian Cruise Line
cruise
$739+
Ohio: Daily Car Rentals from Cincinnati
85OFF.com
Car Rental
$19+