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It appears that the 20th attempted airfare hike this year is going to sail through without any issues as tonight Northwest Airlines and US Airways completed the matching of the other 4 legacy airlines (American, Continental, Delta & United) by raising prices $20 to $40 roundtrip across the bulk of their respective route systems. Southwest Airlines initiated the 20th attempted airfare hike of 2008 Thursday by raising fares by $10 - $20 roundtrip for travel starting 2nd of November. The legacy airlines took this rare opportunity to not only match Southwest but to “double-up” on the hike, raising most routes by$40 roundtrip. As usual the legacy airlines tiptoed around most Southwest overlapping routes to stay competitive. I do not expect to see the same torrid pace of airfare hikes in the latter half of 2008 as the first - at the current pace we would end up with 40 attempted airfare hikes this year (we had 23 attempts in 2007). Many airlines have a plethora of new “fee charges” which will help blunt some of the rising cost of fuel for the rest of the year — but all bets are off if oil “travels” through $160 a barrel and beyond. Catch the 2008 Airfare Hike Timeline Here. |







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