US airline travelers: route cutbacks are coming
Route switching for US airlines has started getting serious as the carriers attempt to cope with soaring fuel prices and a slowing economy. Air travelers will begin to notice the difference as some areas face cutbacks in service.
One of the latest to “refine” its schedule is Southwest, which announced it would eliminate 40 existing roundtrip flights from its May flight schedule. At the same time, the company is adding 49 roundtrip flights in “key growth markets” such as Denver.
“Many of the changes will be seasonal to accommodate peak summer demand,” according to Southwest.
“Southwest Airlines is concerned about slowing economic growth, and we want our flight schedule to be built around flights that are in high demand,” said Gary Kelly, Southwest Airlines Chief Executive Officer.
JetBlue Airways Corp announced it would also rein in growth by slowing capacity expansion this year.
“The move underscores the dwindling opportunities for US airlines,” said Reuters, quoting airline consultant Robert Mann who said:
“It stands to reason that with higher energy costs and the inability to recover those, more and more of the domestic network is going to be unprofitable.”
JetBlue said it plans to increase capacity — the number of seats for sale – between 6 and 9%in 2008. That would be down from the planned growth rate of up to 13% last year.
“Given an uncertain economic environment and record high fuel prices, we plan to grow more conservatively in 2008,” JetBlue Chief Executive Dave Barger said in a statement.
The move comes at a time when the airline industry was struggling to maintain a recovery that began in 2006.
James Parker, an analyst at Raymond James & Associates, estimates that domestic airline capacity will fall 1% this year, compared with 2% growth in 2007.
Fares at Southwest are as low as $79 one-way with a 14-day advance purchase and as low as $99 one-way with a 21-day advance purchase. Fares apply only to new service.
Southwest is the only US airline to remain consistently profitable this decade, and has an unprecedented string of 34 consecutive years of profitability. Southwest attributes its profitability to a “low cost structure, strong balance sheet, and the most comprehensive fuel hedge of any major U.S. airline.”
Report by David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports
All eyes on Qatar as Qatar Airways leads a season of global events