Fare Hike

ngneer

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Aug 20, 2002
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WN has raised their fares. USA Today says: The increases will be modest -- $3 each way for routes longer than 750 miles, $2 each way for flights between 400 to 750 miles and $1 each way on some routes shorter than 400 miles. The increase was the airline’s first since September, but the low-cost giant says its $299 cap on one-way fares will remain. "We have to balance our desire to be the low-fare leader with the cost pressures in front of us," says spokeswoman Beth Harbin. So why is the airline increasing fares now? The airline's fuel hedges have been reduced. Southwest isn’t alone among discounters raising fares; JetBlue also raised fares last week, pushing its prices up $5 each way.
 
"We have to balance our desire to be the low-fare leader with the cost pressures in front of us," says spokeswoman Beth Harbin.

And here I thought WN was complacent not being the low-fare leader, but much more importantly, the low-cost leader. Catgotchyourtongue, Beth?
 
In simple CASM terms, WN hasn't been the "low cost leader" since B6 started operating. However, on a stage length adjusted basis, WN & B6 run neck and neck.

Jim
 
And here I thought WN was complacent not being the low-fare leader, but much more importantly, the low-cost leader. Catgotchyourtongue, Beth?

Don't confuse "low-fare leader" with mag's incorrect interpretation "always has the lowest fare". Low-fare leader is a pretty accurate title b/c as I've mentioned before (and I used the real #'s last time but don't feel like researching my own postings today), the % of times that you will find a lower WN fare in their markets exceeds their market share which tells me that they are lowest more than their share tells that they should be. So WN consistently has LOWER fares...not the LOWEST so I think Beth was correct to call them what they are.
 
WN has raised their fares. USA Today says: The increases will be modest -- $3 each way for routes longer than 750 miles, $2 each way for flights between 400 to 750 miles and $1 each way on some routes shorter than 400 miles. The increase was the airline’s first since September, but the low-cost giant says its $299 cap on one-way fares will remain. "We have to balance our desire to be the low-fare leader with the cost pressures in front of us," says spokeswoman Beth Harbin. So why is the airline increasing fares now? The airline's fuel hedges have been reduced. Southwest isn’t alone among discounters raising fares; JetBlue also raised fares last week, pushing its prices up $5 each way.

*****Raising fares? How about lowering fares?*****

bizjournals.com
Southwest slices fares
Tuesday January 31, 2:07 pm ET

Southwest Airlines announced the introduction of fares as low as $49 for one-way travel from Philadelphia and other spots Tuesday.
A $49 one-way fare between Philadelphia and Raleigh/Durham in North Carolina is among the discounted fares available.

The fares, which require 21-day advance purchase and range from $49 to $159 one-way, are available for purchase Tuesday through Feb. 9. They are valid for travel from Feb. 21 through the end of Southwest Airlines' published schedule (currently June 9, 2006).

Southwest (NYSE: LUV - News) of Dallas is the second-largest carrier at Philadelphia International Airport, where the dominant carrier is US Airways.

US Airways announced a round of fare reductions of its own for East Coast markets on Monday.

Published January 31, 2006 by the Philadelphia Business Journal

****Catgotchyourtongue whatsyourface?****