Low-Fare Carriers Rethink Ticket Prices

Fares could also rise this summer in the transcontinental markets from New York, where JetBlue is a leading figure. Neeleman noted that capacity in the market is down this year, with the reduction in the high single digits. Last year, he said, JetBlue had 92% load factors in those markets. "We could have gotten more money, [and] we will get more money this year," he said.

Meanwhile, Wright said Southwest has 75% of its first-quarter fuel hedged at $36 a barrel, but added that fuel costs are nevertheless expected to rise 60% year over year. The airline's fuel hedge position will decline gradually over the next four to five years.

"The hedge positions that we have give us some time to adjust both the revenue and the cost structure so that we can have a [business] model that can support $60 [for fuel]," Wright said. "We are working very hard on the cost structure, but we're pretty lean, and you can't get there on the cost side alone."

She noted that Southwest's preference has historically been to gradually increase ticket prices, rather than to take a single larger step.