Oil prices blamed for more price hikes

Hotel News - 10/09/2007

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For those travelling to the United States, flying on Southwest airlines just got a little bit more expensive. The airline initiated a price hike that had a domino effect in regards to its competitors, who in turn followed suit by raising their prices by the same degree.

Southwest raised prices of their tickets for short and medium-haul flights $1, $2 and $5 depending on the distance, and for long-haul runs the price went up a total of $10. In the spirit of balancing spreadsheets that have seen profits falling due to high oil prices, the airline raised its prices for no less than the fourth time in the last year.

Chicago-based United Airlines took Southwest's hike as license to raise its own prices, with spokesperson Roban Urbanski claiming "We have matched the increase that Southwest initiated to ensure that our fares stay competitive and to help offset the rising cost of fuel."

American Airlines was next to raise prices to the equivalent of Southwest, singing the same song of remaining competitive. "This is a very competitive business, and we always pay close attention to what our competitors are doing," said American Airlines' Tim Smith.

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