SWA raising fares


#1

Knew it wouldn’t be long… Southwest airlines will be raising fares.

From CNN news at money.cnn.com/2008/06/18/markets … tm?cnn=yes.

Airlines have to hike fares: As the price of jet fuel approaches $4 a gallon, even traditionally low-cost carriers are being forced to raise fares. Southwest Airlines (LUV, Fortune 500), known for its low fares, said at a conference will need to follow the rest of the industry to keep up with the price of oil.

What next, charges for luggage “to follow the rest of the industry” once they use up their “hedged fuel”??? :smiling_imp:


#2

One common misconception is that SWA is the cheapest airline around. Though they have good fares, they aern’t always the cheapest. I am not that surprised that their fares will go up. Fuel is going up, and regardless of hedges, they need to start raising fares; they haven’t hedged all their fuel.


#3

While it’s true that Southwest isn’t always the lowest fare in a market, overall they do have the lowest fares.

In some cases, the fares are higher due to the government’s imposition of taxes. If, for example, you have a 1 stop flight (must passengers don’t, by the way, on Southwest) on Southwest, then you have two segment fees to pay.


#4

If we are raising fares, I haven’t heard about it. But if we do raise fares, it will a small raise ($5 to $10) which is still cheaper then $25 for checking your 1st bag. By the way, you will not see WN going the route of charging fee’s for the 1st or 2nd bags, pillows, snacks, coke and water aisle or window, ar any other nickel and dime fee. :slight_smile:


#5

That’s because Southwest doesn’t think of its customers as a bother but rather something to “luv.”


#6

Having worked for WN, I think it needs to be said that their workforce behind the scenes is doing what it needs to do to also help keep their airline the cash cow it has been since '73. I remember hearing while in DAL on training that during one particular fuel crisis, the employees set up a fund to have payroll deductions to help pay for fuel. They will not fall into the nickel and dime racket. Call fare hikes what you will, it is buisness to try and make $ other wise why be in buisness? WN hedged their fuel through 2012, if I understood Gary Kelly yesterday in an interview. Airlines aside, think of the mark up on milk, bread, cereal…no one is cussing General Mills for passing on the cost of rising grain costs, dairy costs…to bring products to store shelves. Every industry right now is sucking wind. We are paying for the fuel crisis everywhere we turn we just are not being told about it aas often as when a WN, or AA or name the airline…tweek their cost on a ticket, or bag, snack…We all in the airline industry agree that the media over sensationalize what goes on to whip the flying public into a frenzy by making everyone feel like “The airlines are out to get your wallet”

Everyone take a deep breath and realize that this is going to be the way it is and that is that.

Last night in a pre-work meeting we were told that we reannounced our 4th qtr. earnings and they were not good…translation, be ready to have your hours slashed because the volume is down. Sorry. What the media should check out is how many CEO,COO, VP’'s got their bonus this year…right down to front line managers they will all continue to collect their fat checks while the hourly employees see their hours cut by 10 minutes here 15 there…

Airlines have to offset this fuel cost…we as the flying public have felt every crisis through increase ticket costs…the 9/11 security fees…everything trickles down to the consumer. That is just how it is and will always be.

I suggest if people don’t like it they can either, get their own pilot liscense, take the train or bus, drive, ride a bike, drive a car ride a donkey…what ever it takes to avoid the evil airlines. :imp: