Operations

Airlines Cutting Flights Beginning in October

Posted on July 2, 2008 by LCT Staff - Also by this author - About the author

WASHINGTON, D.C. – Published airline schedules for October show about a third of the USA's 100 busiest airports will lose at least 10% of their domestic air service compared with a year ago. That will be only a foretaste of the broader and deeper cuts in the months to come if oil prices stay at record levels.

For example, the USA's three largest carriers — American, United, and Delta — have announced fall domestic capacity cuts in the 10% to 14% range, but only parts of those reductions will be in place by early October. Those airlines and others have made it clear that more service cutbacks and job losses are ahead this year and in 2009.

Although some small markets are seeing large reductions in percentage terms, large airports in some popular business destinations also are scheduled for significant reductions, according to USA TODAY's latest analysis of published schedule data from OAG-Official Airline Guide. The analysis is based on changes in total seats on daily domestic departures.

Among the airports losing 10% or more of their seats in October vs. a year ago: Cincinnati, a Delta hub; Houston's Bush Intercontinental Airport, a Continental hub; Cleveland, another Continental hub; Pittsburgh; and Phoenix, a US Airways hub.

Even some megahubs will be hit hard by the cutbacks, though in percentage terms, the reductions don't register as big. American, for instance, plans to strip out 28 mainline flights at Chicago O'Hare in the fourth quarter. Its American Eagle affiliate will cut 34 flights there.

Vaughn Cordle, chief analyst at AirlineForecasts, says that average fares need to rise at least 20% if the airlines are to cover their higher costs. But higher fares will reduce demand, requiring about 15% to 20% less capacity, he says. Other big carriers have yet to detail their service cuts, but have tipped their hands. United plans to park 100 jets by the end of 2009. It will lay off 950 pilots and cut the jobs of at least 1,100 other workers. More than 4,000 Delta workers have accepted incentives to retire early or leave voluntarily this year. Continental plans to cut 3,000 jobs this fall.

Southwest, the industry's top discounter, is the only one still planning a modest year-over-year capacity increase.

Source: USA Today

View comments or post a comment on this story. (0 Comments)

More News

Rhode Island Operation Buys Wedding Trolley Service

Operator John Olinger of ROCKSTAR LIMO / O2 Global plans to grow the fleet of Kenny's Coach and Trolleys.

Sister Duo Absorbs What Industry Offers

eNews Exclusive: Briana and Chelsea Candeub of Park Avenue Limousine have learned the importance of never letting educational opportunities pass them by.

Luxury Travel Trends Disrupting The Industry

Brands can no longer rely on low-hanging fruit. Instead, they need to implement differentiating strategies to succeed going forward.

Chosen Payments Assists Operator Who Was Scammed

A suspect used a mobile app to place ride orders directly into a New Jersey company's software system.

Young Limo Entrepreneur Makes His Mark On The Industry

ENEWS EXCLUSIVE: Moe Ahmed started his California-based company at 18 and proves anything is possible when you have an incredible work ethic.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - March 2017 $12.95 INT'L LCT SHOW ISSUE COVER STORY: * Innovate or Die: Show To Be a Business "Disrupter" * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close