Operations

American Cutting Down Flights Due to Fuel Costs

LCT Staff
Posted on October 5, 2005

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."

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