Ex737Driver
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http://yahoo.reuters.com/news/artic...2-12_18-58-12_N12393715&type=comktNews&rpc=44
LOS ANGELES, Feb 12 (Reuters) - Southwest Airlines Co. (LUV.N: Quote, Profile , Research), the leading U.S. discount carrier, said on Monday it raised fares by up to $10 each way, sparking ticket increases by other carriers.
Southwest, which operates at lower costs than traditional airlines, has generally helped keep increases in U.S. air fares in check. But the carrier has been gradually raising fares as it faces rising labor and fuel costs, giving rivals leeway to increase ticket prices.
Higher fares along with fuller planes and lower costs enabled U.S. carriers to post profits in 2006 after years of losses.
"It is increasingly evident that, if we can count on higher oil prices, we can count on Southwest to push fares higher," said JPMorgan analyst Jamie Baker in a note. "Southwest's full court press for higher revenue is a phenomenon we expect to continue for several years."
Southwest spokeswoman Beth Harbin said the no-frills airline raised fares on flights over 1,000 miles by $10 each way. Flights between 401 and 999 miles were raised $3 each way. Flights under 400 miles were raised $2 each way. The increases exclude flights to or from Dallas, Harbin said via e-mail.
AMR Corp.'s (AMR.N: Quote, Profile , Research) American Airlines, Continental Airlines (CAL.N: Quote, Profile , Research) and bankrupt Northwest Airlines (NWACQ.PK: Quote, Profile , Research) all matched Southwest's increase, representatives of the carriers said.
The increase, which took effect on Friday, marks Southwest's first fare increase this year, after six last year. In recent weeks, traditional carriers failed twice to raise fares as rivals including Southwest resisted.
Southwest shares were up 59 cents at $15.74 in midday trading on the New York Stock Exchange. AMR shares rose 99 cents to $37.90 on NYSE. Continental shares were up $1.17 at $43.01 on NYSE.
LOS ANGELES, Feb 12 (Reuters) - Southwest Airlines Co. (LUV.N: Quote, Profile , Research), the leading U.S. discount carrier, said on Monday it raised fares by up to $10 each way, sparking ticket increases by other carriers.
Southwest, which operates at lower costs than traditional airlines, has generally helped keep increases in U.S. air fares in check. But the carrier has been gradually raising fares as it faces rising labor and fuel costs, giving rivals leeway to increase ticket prices.
Higher fares along with fuller planes and lower costs enabled U.S. carriers to post profits in 2006 after years of losses.
"It is increasingly evident that, if we can count on higher oil prices, we can count on Southwest to push fares higher," said JPMorgan analyst Jamie Baker in a note. "Southwest's full court press for higher revenue is a phenomenon we expect to continue for several years."
Southwest spokeswoman Beth Harbin said the no-frills airline raised fares on flights over 1,000 miles by $10 each way. Flights between 401 and 999 miles were raised $3 each way. Flights under 400 miles were raised $2 each way. The increases exclude flights to or from Dallas, Harbin said via e-mail.
AMR Corp.'s (AMR.N: Quote, Profile , Research) American Airlines, Continental Airlines (CAL.N: Quote, Profile , Research) and bankrupt Northwest Airlines (NWACQ.PK: Quote, Profile , Research) all matched Southwest's increase, representatives of the carriers said.
The increase, which took effect on Friday, marks Southwest's first fare increase this year, after six last year. In recent weeks, traditional carriers failed twice to raise fares as rivals including Southwest resisted.
Southwest shares were up 59 cents at $15.74 in midday trading on the New York Stock Exchange. AMR shares rose 99 cents to $37.90 on NYSE. Continental shares were up $1.17 at $43.01 on NYSE.
