Southwest Airlines Withdraw Fare Increases

by Corrina Zabella on September 8, 2011


Southwest Airlines withdraw fare increases Before, it’s not that easy to figure out how much will you have to pay when you are planning for a trip. But when taxes and fees entered the scene, the cost of the trip has been easy to compute.

Costs have been increasing these past few months, but there is good news about costs. Led by Southwest Airlines, most of the current increases in fare were withdrawn by the airline and other carriers also hurried to do the same act.

Farecompare.com’s chief executive, Rick Seaney accounted that the domestic airlines have began the rollbacks early morning on Monday, saying that there are only several assurances, such as taxes, death and the reality that domestic airlines would compete the rollback done by Southwest.

After Congress was unsuccessful in passing another custom extension for the legislation, which has been long delayed, that is keeping the Federal Aviation Administration in operation, the fare increases were enforced that began July 23.

The federal government has already lost about $25 million in revenue daily, with the Fed deficient of authorities in collecting taxes. The airlines increased fares in order to lift the difference, instead of passing on the savings.

On Monday, the Congress momentarily reinstated the financing of FAA. Since the federal taxes are being added up to the prices of airline tickets, the airlines withdrew the increases in fare as a part of making things easy as oil prices are dropping.

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