Southwest chief: Airlines fare increases are likely

Southwest Airlines Co. chief executive Gary Kelly says rising fuel costs put major pressure on the strapped airline industry to increase fares.

Kelly spoke today at a breakfast hosted by the Greater Boston Chamber of Commerce.

Kelly said it appears that every airline, except for Texas-based Southwest, will report a loss in the first quarter this year. He said that means costs will either have to go down or fares will rise - though costs already have been reduced industry-wide.

Kelly said the industry can adjust to a drop in flyers by finding innovative ways to offer air travel.

He also indicated Southwest wasn't interested in its own merger, like the Northwest-Delta deal. He said just the thought is daunting, given the complexity and upfront costs. (AP)