Southwest Airlines has raised fares of most of its flights by $1 to $10 each. The announcement came over the weekend, and many other airlines moved quickly to match the rate hike. The increases began showing up Friday and ranged from $1 each way on flights of under 500 miles to $10 on walk-up fares for flights longer than 1,250 miles, said Southwest spokeswoman Beth Harbin. Southwest remained profitable during the airline industry slump which began in early 2001. The slump due to a weak economy, the lasting effects of the 9/11 terrorist attacks, and increasing operating costs. The increase in fares is not a surprise in an industry so highly sensitive to crude prices - jet fuel being one of the top expenses. “Costs of running an airline continue to rise, more than 10 percent in the first quarter, driven primarily by a 12.6 percent cost surge in fuel,” said ATA vice president and chief economist John Heimlich. “Fortunately, airlines were able to compensate with a 16.7 percent improvement in fuel efficiency and continued vigilance on other controllable items.” "It's still about cost," Harbin said. "Fuel prices are still extremely high, and we're making modest adjustments to cover those costs." Southwest has historically boasted about its low fares. However, this increase marked its third increase this year after six fare hikes in 2006.
