US airlines cut back on flights and capacity projections

Many major world carriers are reacting to the rising price of fuel and hence the rapidly increasing costs associated with operating airlines by cutting capacity on select routes, actually grounding planes but, at the very least, trimming down on projected expansions. Most recently, Delta, Continental and US-based discount carrier, Southwest, all confirmed that they will be scrapping previously drawn up plans to increase the number of routes and flights. According to information obtained by MarketWatch, most US airlines will expand their routes and flights by less than 2%, while some may, in fact, cut back altogether. This represents a significant change in plans, as earlier this year most airlines were preparing for expansion, thanks to the revival of the air travel industry.

Southwest referred not only to the rising price of oil, but also to a belief held by many that the US may be heading into a recession. The effects of an economic slowdown can already be felt and the country’s largest budget carrier believes that this could cause a drop in passenger traffic figures, as people look for less expensive forms of transport, or scrap family holidays altogether. Yet only two months ago, Southwest still planned on adding about 19 planes to its fleet. Now, it looks like the carrier may purchase at most four to five new aircraft. The same appears to be the case at Delta Air Lines, where executives originally expected to increase passenger capacity by about 5%. This figure is now below 2%, as the airline heads into an uncertain new year with caution.

www.delta.com