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Posted Jul 23, 2010
Posted Apr 2, 2010
Posted Mar 8, 2010
AirlineFinancials.com points out that in 2009, Delta, American, United and US Airways "collectively operated 85 billion less domestic seat miles than they did six years ago," for an average reduction of 21 percent.
Posted Mar 8, 2010
Posted Oct 22, 2008
A post today by "Professor Sabena" on the T2 Impact blog suggests U.S. airlines have failed in their strategy to raise fares by cutting capacity. "You would think that the significant cuts in capacity from Labour Day onwards would have given the airlines market pricing power and the ability to raise yields," the professor writes. "But even with the wonderful drop in fuel prices the airlines just cannot seem to win for trying." Not only is this assessment a tad premature, it's also inaccurate.
Posted Oct 16, 2008
Posted Sept 26, 2008
Posted Sept 23, 2008
Today at The Beat Live in Cleveland (don'tcha wish you were here?), lively moderator and MC Dave Hilfman, SVP of sales for Continental, led with this provocative comment about airline cuts.
He cited that 4th quarter cuts had exceeded 8 percent, but in Q109 we should see "12, 13 and 14 percent cuts." This is of course in response to the continued volatility of jet fuel, which yesterday closed at $120 per barrel, an unprecedented one day increase. He also mentioned that every $1 increase costs Continental and additional $45 million in fuel per year.
Posted Aug 6, 2008
Sabre's internal studies indicate that capacity cuts alone are not likely to provide enough for airlines to break even, and the result is likely to be increased fares, which typically results in reduced volumes of bookings. We believe international routes will be largely unaffected due to their greater profitability. Capacity cuts will have significant impact on hotel bookings--and in fact, we are compiling updated info for July that shows that corporations are already starting significant cutbacks, even ahead of the capacity cuts becoming effective (i.e., July decrease in bookings would not be result of airline capacity cuts, since those will mostly become effective starting in September; therefore, decrease in hotel nights booked is the result of corporations scaling back).
Posted Jul 2, 2008
U.S. airlines during the past few months have made known their plans to reduce domestic capacity. But there is a growing list of international routes--traditionally seen as highly lucrative for operators but now cost-prohibitive in many cases--that carriers are canning. So while it may become more difficult to fly between a small city in New England and one in New Mexico, it may be even more challenging to get to England, or Mexico.
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