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Traffic Dips For Southwest Airlines

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DALLAS (AP) – Southwest Airlines Co. says a key revenue measure rose just 2 percent in July, in another sign that it’s becoming harder for airlines to raise fares amid a weak economy.

The statistic measures revenue for each mile times available seats. It goes up when airlines raise prices, fill more seats, or do both.

July’s increase — reported Tuesday — was the smallest all year for Dallas-baesd Southwest, which includes its AirTran Airways subsidiary in the figures.

The same thing happened at US Airways, which reported last week that the revenue statistic rose just 1 percent in July.

The latest attempt to raise fares, led by United Airlines, failed this week when Southwest declined to match the higher prices.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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