JUST read this about AIRLINE CHANGES

[NYDisneyKid]

http://www.walletpop.com/article/_a...s/153369?icid=200100397x1208359024x1200491402 ºOº

 

[mickey2000]

AirTran Airways plans for capacity to fall 7 percent to 8 percent between September and December.

Alaska Airlines’ parent company has said the carrier's fourth-quarter mainline capacity will be cut by 5 percent compared with 2007.

American Airlines plans to cut its U.S. flying by up to 12 percent after the busy summer travel season ends.

Continental Airlines plans include reducing flights in the U.S. this fall by about 10 percent.

Delta Air Lines has said it intends to cut domestic capacity by 13 percent during the second half of the year. A spokeswoman said a good portion of that would come during the fall.

JetBlue Airways has said it expects September capacity to be down 10 percent and does not expect to grow next year.

Northwest Airlines is planning to cut fourth-quarter consolidated domestic capacity by 7 percent to 8 percent.

United Airlines expects fourth-quarter mainline domestic capacity will shrink 16 percent compared with the previous year.

US Airways will reduce capacity 6 percent to 8 percent on domestic flights in the fourth quarter

 

[CarolA]

My favorite lines from the link OP provided

"Fewer overall seats in the air means planes that remain will be fuller, which gives airlines pricing power to raise fares.
"The reality is — and I don't want to diminish this — the industry is going to have to cover its costs," American Airlines chief Gerard Arpey said in an interview."

What a concept..cover costs. Glad I don't own airline stock. We don't even seem to be discussing PROFIT! LOL!

(And folks without profit, there are NO new planes, no investment, no raises etc...)

 

[mickey2000]

My favorite lines from the link OP provided

"Fewer overall seats in the air means planes that remain will be fuller, which gives airlines pricing power to raise fares.
"The reality is — and I don't want to diminish this — the industry is going to have to cover its costs," American Airlines chief Gerard Arpey said in an interview."

What a concept..cover costs. Glad I don't own airline stock. We don't even seem to be discussing PROFIT! LOL!

(And folks without profit, there are NO new planes, no investment, no raises etc...)

Carol your right!!
Good news is that I sold my stock 3 weeks ago

 

[CarolA]

Carol your right!!
Good news is that I sold my stock 3 weeks ago

And how much did you lose?

(Just kidding)

I really wish I thought the management of airlines had the BACKBONE to do what they need to do, but they have proven time and again "We are willing to risk bankruptcy for reasons we don't claim to understand"

 

[Brer Chump]

"Fewer overall seats in the air means planes that remain will be fuller, which gives airlines pricing power to raise fares.
"

Then the raising of fares will decrease demand, thus lowering prices.

I think the airlines imagine that in 12 months, planes will be full with $350 fares, since of the reduced supply. For some reason, I don't think that is going to happen.

 

[CarolA]

Then the raising of fares will decrease demand, thus lowering prices.

I think the airlines imagine that in 12 months, planes will be full with $350 fares, since of the reduced supply. For some reason, I don't think that is going to happen.

If it doesn't expect more bankruptcies and airline failures.

I think it will happen. The volume may be much lower then we expect.... but the truth is there are few options left.

 

[Brian Noble]

Then the raising of fares will decrease demand, thus lowering prices.

Unless the supply-demand curve is degenerate, (or I badly mis-remember my microeconomics) decreasing supply will increase prices, even with the corresponding drop in demand.

Basically, the part of the demand curve you lose is the part that is higly price sensitive. Naturally, those are the customers the airlines are least interested in serving, because they are less profitable overall.