Business Journal: Southwest Raises Fares

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(Sacramento, CA)
Thursday, July 6, 2006

About half of all flights in and out of Sacramento International Airport are operated by Southwest Airlines – nearly 5 million passengers a year. So the airline’s decision last Friday to raise fares will have a far-reaching effect locally. 

One-way fares on flights longer than 1,000 miles – to Chicago, for example – now cost $10 more. Flights between 751 and 1,000 miles were bumped up $3. Shorter flights saw no increase. 

Southwest is one airline that hedged its exposure to fuel price fluctuations through advance contracts. But a company spokesman said that hasn’t provided full protection against today’s prices.