Southwest set to raise prices, too

Josh Roberts believes the best trips involve long hikes and muddy boots. His life goals haven't changed much since he was a kid: He still wants to be Indiana Jones when he grows up.

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Josh joined SmarterTravel in 2001, and is an active member in both the Society of American Travel Writers (SATW) and the Society of Children's Book Writers and Illustrators (SCBWI).

In addition to SmarterTravel, he has written for USA Today, The Boston Globe, Yahoo! Travel, The Huffington Post, Airfarewatchdog, TripAdvisor, Jetsetter, ABC News, Oyster, and Business Insider. His travel photography can be seen in Britain and Ireland's Best Wild Places, published by Penguin UK.

The Handy Item I Always Pack: "A lacrosse ball. It's small, lightweight, and works wonders on loosening up tight muscles."

Ultimate Bucket List Experience: "Being the first to discover an ancient lost city. Failing that, visiting as many of the already-discovered ancient ruins as possible."

Travel Motto: "Not all those who wander are lost." -J.R.R. Tolkien

Aisle, Window, or Middle Seat: "Aisle."

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Yesterday I noted the lowest fares on JetBlue might soon be a lot harder to come by. The news gets even worse today. The nation’s other low-fare darling, Southwest, says it’s facing about $600 million in higher fuel costs this year. And, says Laura Wright, Southwest’s chief financial officer, “We’re going to have to see revenue improvement to cover those fuel costs.”

The airline isn’t coming right out and saying it will raise prices, but airline specialist Terry Trippler of Cheapseats.com says he expects Southwest to go even further than the $2 to $3 increase it established earlier this year. Trippler predicts an industrywide increase in leisure travel prices of about 10 percent this year.

For its part, Southwest says it plans to continue its expansion (about 30 new planes this year). Financially it’s also in better shape than JetBlue: Southwest actually made money in 2005, to the tune of $548 million net income. That’s up 75 percent year-over-year.

As with JetBlue, I expect we’ll still see those dazzlingly low prices on most routes. There just won’t be as many seats available at those rates. And that’s all the more reason to shop around before you book.

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