cant-call-southwest-discount-airlines-wsj: Personal Finance News from Yahoo! Finance: "Southwest Airlines Co. (NYSE: LUV - News), the king of low fares, is feeling its crown slip.
High fuel prices, the end of lucrative fuel hedges and a changing route network have led Southwest to push its prices up dramatically, faster than many other airlines. With last-minute fares of more than $1,000 round-trip in long-haul markets, some nonrefundable fares over $900 and average prices in some markets higher than competitors, it's hard to call Southwest a 'discount' carrier anymore.
Southwest's average ticket price has jumped 39% in the past five years, while the average ticket price for domestic trips for the industry was up 10%, according to the Department of Transportation.
That's led to more markets where Southwest is sometimes higher priced than rival airlines. Between Baltimore and Oakland, Calif., a route where Southwest carries 73% of all passengers, Southwest's average ticket was $232 in the fourth-quarter last year, up a hefty 63% from $142 in the same period of 2005, according to government data. The second-largest carrier on that route was Delta Air Lines Inc. (NYSE: DAL - News), which averaged $166 in the fourth quarter last year, or 28% less than Southwest."
Friday, June 3, 2011
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