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Southwest Airlines announced Tuesday plans to slash fares starting with August travel, increasing the revenue pressure on its money-losing rivals.
"They are trying to make a statement that they are still the industry's low-fare leader," says industry analyst Henry Harteveldt at Forrester Research.
The discount-airline king began offering one-way sale prices of $39 to $99 on 14-day advance purchases systemwide, except flights involving Orange County, Calif., and George Bush Intercontinental Airport in Houston. In most cases, the fare sale applies to travel between Aug. 16 and Oct. 29. Savings range from 20% to more than 65% off its previous 14-day advance fares.
Analysts said rivals must match the sale prices of the USA's No. 5 carrier to remain competitive. But that could rob several financially ailing major carriers of cash they need. By midafternoon Tuesday, American Airlines, Northwest Airlines and US Airways had already matched the sale fares in markets served by Southwest... [read more at usatoday.com]
"They are trying to make a statement that they are still the industry's low-fare leader," says industry analyst Henry Harteveldt at Forrester Research.
The discount-airline king began offering one-way sale prices of $39 to $99 on 14-day advance purchases systemwide, except flights involving Orange County, Calif., and George Bush Intercontinental Airport in Houston. In most cases, the fare sale applies to travel between Aug. 16 and Oct. 29. Savings range from 20% to more than 65% off its previous 14-day advance fares.
Analysts said rivals must match the sale prices of the USA's No. 5 carrier to remain competitive. But that could rob several financially ailing major carriers of cash they need. By midafternoon Tuesday, American Airlines, Northwest Airlines and US Airways had already matched the sale fares in markets served by Southwest... [read more at usatoday.com]