Jan 25, 2009

Great prices to fight crisis


What did you expect? Now that economy is still facing some hard times, airlines need to lower their prices and get enough costumers to keep them running!

Delta Air Lines Inc. also appeared to match the Southwest move. Delta posted a systemwide fare sale on its Web site that runs through Monday — same as the Southwest sale. A three-day sale by AirTran ended Thursday night.

Representatives at Delta did not immediately return messages.

Dallas-based Southwest launched the sale shortly after announcing Thursday that it lost money in the fourth quarter, its second-straight losing quarter after 69 straight profitable ones.

Chief Executive Gary Kelly said Thursday that there was "notable softness" in February and March bookings. The day before, AMR Chief Financial Officer Thomas Horton said March looked particularly weak.

Airlines often match their rivals' fares rather than risk losing price-sensitive passengers.

Last year, airlines raised prices several times and imposed new fees on checked bags to counter rising fuel prices. Although fuel prices have fallen sharply, most of the fees are still in effect.