Excerpt from our One Page Annotated Wall Street Journal Summary (which you can get emailed to you every morning by signing up here):
Southwest Airlines Raises Fares Again, Citing Fuel Prices
- Summary: Southwest (NYSE:LUV) implemented one of its largest fare increases ever, hiking the price by $3-10 for one-way trips and raising its refundable fare rate. Southwest spokeswoman Paula Berg: 'We earned $548 million last year and our fuel bill is expected to be $800 million higher this year. Something has got to be done about it.' Despite the price hikes, Southwest's fill rate is strong -- averaging 80.4% full in June, up from 76.2% a year ago.
- Comment on related stocks/ETFs: Jack Miller has argued for some time that Southwest and other domestic-only carriers can't compete in the current internationalized environment, and for this reason Continental (CAL) and American (AMR) are the only strong buys in the sector.