Southwest joins price hike - Sep. 11, 1997

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Southwest joins price hike

September 11, 1997: 8:00 a.m. ET

Other airlines raise fares 5 pct. in response to Oct. 1 tax increase

NEW YORK (CNNfn) - Southwest Airlines, the only major carrier to resist a 5 percent fare increase recently, is reportedly raising some rates up to $2 a flight.
     The price hike represents a 2.5 percent increase for unrestricted, one-way business fares in some of Southwest's key corridors, the Wall Street Journal reported Thursday.
     Most major U.S. airlines over the weekend quietly upped fares by 5 percent, including Northwest Airlines, United Air Lines, Delta Air Lines, Trans World Airlines and American Airlines.
     Only Southwest resisted, but then TWA and American backed down by Monday. Delta hinted it might switch back, too.
     Some analysts think the industry is raising rates to pay for a ticket tax increase that takes effect Oct. 1. The increase - $1 per passenger for each leg of a trip - will pay for new airport security and other upgrades.
     The strong economy has boosted air travel this year.
     Southwest's increases won't affect fares of $299 or more on cross-country routes, or restricted leisure fares, the newspaper said.

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