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Southwest Sparks a Price-Increase Trend

Southwest Airlines (NYSE: LUV  ) is raising rates on about 10% of its routes, by $5 each way. Raising prices in September could be a good move because business travelers tend to be the customers between September and February, and they have less flexibility than those traveling for pleasure.

After Southwest announced the fare increases, United Airlines, American, Delta Air Lines, JetBlue Airways, Virgin America, and US Airways followed suit. United expanded the increase to all domestic routes except for Hawaii, according to reports. 

A spokesman for Southwest cited higher fuel costs as the main reason for the increase, according to a USATODAY report. Crude oil is trading right around $100/barrel, up significantly from its $78 low in June.

Fool contributor John Divine owns no shares in any of the companies above. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

Motley Fool newsletter services have recommended buying shares of Southwest Airlines. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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  • Report this Comment On September 16, 2012, at 11:07 PM, prginww wrote:

    Jet fuel actually tracks closer to Brent crude rather than WTI. Brent was about $117 per barrel

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10/24/2016 10:15 AM
LUV $42.37 Down -0.06 -0.14%
Southwest Airlines CAPS Rating: ****