Pricing is an art that the airlines haven’t mastered.

Most haven’t come even close. True, the airlines have a huge problem. With their fuel costs headed through 40,000 feet and climbing they haven’t been able to raise fares. With consumer confidence dropping, the consumer is cutting back, staying closer to home, trying to minimize their already sizable credit card debt. Business is keeping a tight rein on cost, cutting travel expenses.

Kind of the perfect storm for the airlines.

So what do they do? Fees, surcharges and charges for previously free services. By now you’ve heard that American is charging to check luggage. $15 for the first bag.

A friend just came back from a trip to Dallas with this story. She felt that the overheads would be stuffed as passengers tried to avoid the new charge. Running behind she realized she would be boarding late and most of the overhead space would be taken. So she checked her bag. But when she boarded she discovered there was plenty of space so she folded up her raincoat in the overhead. The flight attendant came down the aisle, removed her coat and handed it to her, explaining that the overheads were reserved for luggage. She had to fly all the way back to Chicago with the coat on her lap.

This was her last flight on American.

The airlines need to look at how the rental car companies alienated their customer base in the eighties doing the same thing. It created all kinds of ill will which led to lawsuits, the rise of discounters, legal constraints on collision damage waivers, FTC actions on advertising and promotion and a host of other painful problems.

Once again, Southwest has it figured out. Fair service. Fair prices, with no nonsense, hidden fees or last minute surcharges. They don’t seem to cutting back much.