Southwest Cuts One-Way Fares

Southwest Airlines Inc., the only major U.S. airline consistently profitable since the Sept. 11 attacks, said it is capping one-way, last-minute fares at $299, $100 less than the previous price, as it tries to grow its long-haul business.

The No. 7 U.S. carrier, which flies mostly short-haul routes and relies on measures such as quicker turnaround times for its planes to maintain lower costs than competitors, said no one-way fare will be higher than $299.

Gary Kelly, Southwest’s chief financial officer, said that even though the airline is profitable, it is seeing declines in profit on a year-on-year basis and the fare cut is one way to increase business.

Unlike its biggest rivals, Southwest has turned a profit in every quarter since Sept. 11. In the most recent period, it earned $102 million. Southwest shares rose 38 cents to $15.23 on the New York Stock Exchange.