Southwest & a Volcano

A NY Times article notes that there is a major airline battle heating up in Philadelphia. During their earnings call yesterday, Southwest said that Philadelphia has brought it the highest level of bookings ever for a new city. Because of that, the carrier is considering increasing the number of flights out of the city of Brotherly Love. There is some discussion that Philly will reach the size of Baltimore in terms of the number of Southwest flights. US Airways, in response, has upped its number of flights and lowered fares to a bunch of cities. Meanwhile, Frontier and Delta have increased flights to the city. All of this is good for consumers and Southwest, and ultimately bad for US Airways, who doesn’t stand a chance with its costs 50% higher than Southwest, and Delta, who is simply capacity dumping in response to AirTran’s growth.

And finally…are you flying to the mid Pacific region anytime soon? Well, if you are, you may be delayed. A volcano is threatening to erupt and disrupt air traffic in the area. If you have an upcoming flight to the Mariana Islands, you’ll want to check with your carrier (probably Continental, incidentally, whose Continental Micronesia unit posted some pretty favorable results the other day. Who knew that the Guam-Palau route would make money?)

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