tom911
Mar 28, 05, 10:45 pm
Big airlines have complained over the last few years that the industry was awash in seats. But despite deep financial losses, none of them wanted to reduce capacity, given the heavy demand for travel.
Now, rising fuel prices - up 25 cents a gallon since just mid-February - are forcing airlines to act, even though planes are as full as ever. Along with raising fares, the big airlines are beginning to retire less efficient planes and reduce domestic service.
Passengers, who have enjoyed extraordinary bargains on tickets this decade, are paying as a result, both in higher fares and in fewer seats, as the airlines rethink service on routes that are especially unprofitable.
The situation is putting even more airline jobs at risk, on top of more than 100,000 lost this decade. But the airlines say they have no alternative.
New York Times link (http://www.nytimes.com/2005/03/29/business/29seats.html)
Now, rising fuel prices - up 25 cents a gallon since just mid-February - are forcing airlines to act, even though planes are as full as ever. Along with raising fares, the big airlines are beginning to retire less efficient planes and reduce domestic service.
Passengers, who have enjoyed extraordinary bargains on tickets this decade, are paying as a result, both in higher fares and in fewer seats, as the airlines rethink service on routes that are especially unprofitable.
The situation is putting even more airline jobs at risk, on top of more than 100,000 lost this decade. But the airlines say they have no alternative.
New York Times link (http://www.nytimes.com/2005/03/29/business/29seats.html)