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October 12, 2008 4:07:20 PM CDT

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Fuel Costs Bump Up Budget Airfares

Posted Jun 20, 08 3:43 AM CDT in Business 

(Newser) – Rock-bottom airfares are going the way of the zeppelin as fuel prices continue their climb into the stratosphere, the New York Times reports. Some budget carriers have gone bust. Others have hiked fares and begun to woo more business travelers, blurring the line between big carriers and discount operations. Southwest and JetBlue have ditched their caps on fares, with JetBlue doubling its one-way cross-country fare to as much as $599.

“The reality is that fares must go up,” said a Southwest executive. "The arithmetic doesn’t work if we transport five people across the country at $99 each way.” Seeking to keep its thrifty image while raising fares, Southwest is now stressing its freedom from the extra fees that  many big airlines have been tacking onto fares.

Source New York Times

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A Southwest Airlines plane is seen at Los Angeles International Airport in this 2007 file photo.   (AP Photo)
JetBlue planes wait at terminal gates at JFK Airport in New York, in this Feb. 16, 2007 file photo. Jet Blue has jettisoned its promise that no fare would cost over $299.   (AP Photo)
JetBlue has been trying to offset rising fuel prices by making itself more attractive to business travelers.   (AP Photo/Jeff Chiu)
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gas prices  • airline industry  • airline  • Southwest Airlines  • JetBlue  • airline ticket prices  • budget airlines  • discount carriers


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