[an error occurred while processing this directive]
Fewer flights will be available to U.S. travelers this month as airlines begin trimming their schedules to cope with high fuel costs and growing losses. But the real hit won't occur until November and December, as major carriers make the deep cuts in capacity that they've been promising. Aviation consultant Boyd Group estimates that flights by U.S. airlines will decline 9.3 percent in November compared to a year earlier, which translates to 9.6 percent fewer seats. Boyd Group president Michael Boyd said the capacity reductions should be completed by the end of 2009, but with an airline industry much different and smaller. "It'll find its level by the end of 2009," Mr. Boyd said. "That level will probably be 15 to 18 percent less capacity and about 15 to 20 percent higher average fares" compared to 2008. American Airlines Inc. and regional partner American Eagle will make their deepest cuts in their November schedules, although the reductions this week will sharply shrink their San Juan, Puerto Rico, hub. For most airlines, the reductions largely mean that they are flying fewer times on a route, Mr. Boyd said. By the end of November, American will end its service to Oakland, Calif., London Stansted and Barranquilla, Colombia. American Eagle will end service to Albany, N.Y., Harrisburg, Pa., Providence, R.I., San Luis Obispo, Calif., and the Dominican Republic. But for most of its cities, American will simply fly less often: one less flight from Dallas/Fort Worth to Boston, Charlotte, N.C., Washington National, Newark and Denver, for example. As it parks airplanes and cuts flights, American plans to eliminate about 8 percent of its jobs or 6,500 to 7,000 positions. More than 900 flight attendants began retirement or temporary leaves at the end of August, and some layoffs have already occurred. But the carrier is still working through its voluntary severance process with the Transport Workers Union, and it told the Allied Pilots Association in August that 200 potential furloughs won't occur Oct. 1, as previously suggested. Mr. Boyd said the crisis in the airline industry hasn't gone away even though oil prices have dropped well below their summer highs approaching $150 a barrel. "Man, when oil hit 115 bucks on the way up, we were doing obituaries on carriers. Now it's dropped to $115, and you'd think it was cheap oil again," Mr. Boyd said. Airlines "still got to adjust to that," which means they have to cut capacity to push prices up and eliminate marginal flights, he said. "Ultimately, it all comes back to extraordinarily high fuel prices and the ensuing significant losses we've lost as a result of that," said American Airlines spokesman Tim Smith. "Even with the recent softening of oil prices somewhat, we are still way behind price-wise where we were in 2007, plus fuel prices remain very volatile." The hope of airlines is that the cuts in capacity will allow them to raise fares with fewer discounts. On average, domestic fares between metro 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 FareCompare.com. The changes starting this month come on top of a list of new charges – for luggage, drinks, pillows and other amenities. "Airline travel is airline travel – it's been bad for a long time," Chris Bardasian, an American Airlines frequent flyer, told The Associated Press 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." The Associated Press contributed to this report. Major airlines, including American Airlines, begin flight cutbacks
07:23 AM CDT on Tuesday, September 2, 2008