Low-Fare Carriers Rethink Ticket Prices

Executives from two of the nation's leading low-fare airlines said Wednesday that fares need to increase in the face of higher fuel costs.

"We need a higher average fare for our tickets," said David Neeleman, CEO of JetBlue Airways (JBLU Quote), at the JP Morgan transportation conference. "We need to get another five bucks or 10 bucks. We are running an airline pretending that oil was going to be $50 a barrel."

Meanwhile, Southwest Airlines' (LUV Quote) Chief Financial Officer Laura Wright said her company's revenue has to rise, although the airline's extensive fuel-hedging program provides a cushion against the need for immediate ticket-price increases. ...