ATLANTA — The grip U.S. airlines have on travelers’ wallets is about to get tighter as carriers go ahead with plans to trim their domestic schedules because of high fuel costs.
Executives acknowledge that despite the economic downturn, fares will rise, discounts currently available will be scarce, and routes and frequencies of flights will be reduced as domestic capacity is cut through the end of the year. The changes, starting in September, come on top of a litany of new charges — for luggage, drinks, pillows and other amenities — announced by some airlines earlier this year.
“Airline travel is airline travel — it’s been bad for a long time,” Chris Bardasian, an American Airlines frequent flier, said recently at Dallas-Fort Worth International Airport. “I suspect prices will go up, fewer people will travel, and if you’re willing to pay the price it will be fine.”
There were sharp capacity cuts during previous weak economic periods in the early 1990s and between 2001 and 2003, but fares went down as discount carriers moved in and filled the void, offering more competition, analysts said. But the high price of oil, airlines’ limited ability to further cut certain costs and the fact that many of the discount carriers are facing the same difficulties as the big carriers make things different this time, analysts said.
On average, domestic fares between major cities are already up roughly 16 percent since Jan. 2, while fares between small cities are up roughly 37 percent year-to-date, according to Rick Seaney, head of airfare research site .
Recent airfare sales for travel during the traditionally slow fall season will be harder to come by as more capacity comes out of the system in the last four months of the year.
“If somebody sees a good fare, they should grab it,” said Kevin Healy, senior vice president of marketing and planning for AirTran Airways.
Scaling back
AirTran: Capacity to fall 7 percent to 8 percent between September and December.
Alaska: Fourth-quarter mainline capacity to be cut by 5 percent compared with 2007.
American: To cut U.S. flying by up to 12 percent after the busy summer travel season ends.
Continental: To reduce U.S. flights this fall by about 10 percent.
Delta: To cut domestic capacity by 13 percent during the second half.
JetBlue: September capacity to be down 10 percent, with no growth expected next year.
Northwest: Fourth-quarter domestic capacity to be consolidated by 7 percent to 8 percent.
United: Fourth-quarter mainline domestic capacity to shrink 16 percent compared with the previous year.
US Airways: Capacity to be reduced 6 percent to 8 percent on domestic flights in the fourth quarter.
The Associated Press
