Wednesday December 07, 2005

Airlines cram more fliers into fewer seats, flights

peakoil.com -> usatoday.com :

For the first time in recent aviation history, the financially troubled U.S. airline industry is shrinking domestic flying capacity. For consumers, diminished capacity could mean higher average fares, fewer choices, fuller flights and fruitless searches for mileage upgrades and award travel. For communities, it could mean deteriorating or disappearing air service - some cities have seen airlines pull out completely, and airport directors in many places are feeling vulnerable to future cuts. For the airlines themselves, it could mean a fighting chance to regain profitability.

U.S. airlines have lost $32.3 billion in the last four years and are expected to lose $10 billion more this year. Top executives such as American CEO Gerard Arpey have long argued that excess flying capacity needs to be trimmed if the industry is to regain its financial health.

Delta, which has been in bankruptcy reorganization since September, has cut the deepest among U.S. airlines. Delta and its regional partners are flying 19% fewer domestic seats this month than in December 2004. Northwest, also in bankruptcy reorganization since September, and its regional partners have shed 11% of U.S. capacity in much the same way as Delta - less frequent service on many routes and smaller jets.

See also :

1. The great American airlines disaster
2. American airlines - crisis getting worse
3. Delta to cut 9000 jobs

(2005-12-07 13:02:23 SGT) [Biz] Permalink

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