Southwest’s AirTran Purchase May Bring Higher Fares

Southwest Airlines Co.’s planned purchase of AirTran Holdings Inc. may lead to higher ticket prices as a low-fare competitor is eliminated and the merged carrier works to make up for higher costs.

“Over time, fares will go up,” said Vaughn Cordle, managing partner of AirlineForecasts LLC in Clifton, Virginia. That will follow the initial celebration of the merger in which they offer “everyone a discount to fly on the new Southwest.”