Despite the burden of record fuel prices, major U.S. airlines are staging a recovery from five years of brutal losses, something many analysts and airlines didn’t think possible as recently as six months ago.
The improving financial results posted by seven of the nation’s 10 big airlines in recent months reflect a fundamental shift in strategy.
The big carriers, which for decades have doggedly pursued market share at any cost, now are focusing on the profitability of each route and flight.
The so-called legacy carriers – those like American Airlines and Delta Air Lines – have abandoned many of the tactics that have led to their cyclical weakness. They are increasingly unwilling to fly half-empty aircraft to stay competitive on a given route.
