DALLAS – Citing high jet fuel costs, American Airlines will
suspend until Oct. 29, 2005, a total of 15 daily roundtrips
on 14 routes from primary hubs in Chicago and Dallas/Ft.
Worth. At the end of the month, it also plans to
discontinue nonstop service between Chicago and Nagoya,
Japan, following recent international service suspensions
announced by Northwest Airlines.
American is reducing service to Atlanta, Denver, Houston,
Minneapolis, Newark and Washington Dulles, among other
cities, but in most cases, will continue operating several
daily roundtrips. The airline said it would again evaluate
its schedule at the end of the month.
"Jet fuel prices have been rising even faster than crude
oil prices for the last year, but it was the 39% rise in
jet fuel costs in the last month alone that pushed us to
make this decision," said American’s Executive Vice
President Dan Garton.
Meanwhile, American and Delta matched a Continental
Airlines move to raise most walk-up and leisure fares by
$10 each way, according to J.P. Morgan Securities analyst
Jamie Baker. "If successful, Continental's effort would
bring to 13 the number of similar increases year-to-date,"
he said in a research note. "Given the significant exit of
domestic seats next year — thus far about the same as
AirTran plus Frontier disappearing — we anticipate the
torrid pace of fare increases to slow as carriers shift
their focus toward traditional revenue management."