Price-hike initiated, matched, lamented

This week saw US air carrier Southwest hike prices in short and medium-haul routes claiming rising fuel prices had to be offset somehow, and raising prices on certain routes by either $1, $3 or $5 were necessary, as well as charging another $10 for journeys of over 1,250 miles, claiming that this would even out the balance books at the airline’s offices.

Spokeswoman for the Dallas-based airline, Whiteny Eichinger says, “It is a small increase to mitigate cost.” Whatever it is, it’s the fourth time they’ve increased prices this year, and other major airlines are using their example to do the same thing, in the name of staying competitive.

Tim Smith, speaking on behalf of American Airlines out of Fort Worth, Texas claims, “This is a very competitive business, and we always pay close attention to what our competitors are doing.”

“We have matched the increase that Southwest initiated to ensure that our fares stay competitive and to help offset the rising cost of fuel,” says Roban Urbanski of United Airlines.

For now, sales don’t seem to be impacted by the increase in prices, but one wonders just how much longer this can go on.

www.aa.com