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High fuel costs leading US airlines to cut back flights
The trend of major US airlines cutting back on service to cope with rising jet fuel prices continues, with larger airports particularly impacted.
“Routes that might have been commercially viable with oil at $40 a barrel are not profitable at $60 per barrel or higher,” said Northwest CEO Doug Steenland.
Washington Dulles is down by 25% and Chicago Midway down 18%, according to figures from the OAG Global Airline Capacity Report.
American Airlines this month dropped 15 total roundtrips on 14 routes from primary hubs in Chicago and Dallas/Ft. Worth.
On the other hand, some airports such as Las Vegas McCarran have added flights (12%, according to the OAG).
US airlines scheduled 19,000 fewer domestic flights compared to a year ago, while also adding 4,000 international flights, said the OAG.
Another trend has been for airlines to replace larger planes with regional jets for some routes.
Smaller aircraft require lower service costs, according to industry analysts.
The fact of fewer flights has apparently helped on-time performance. September on-time flights recorded an 84% rate, a 7% change over the previous month.
Airlines have also been changing their ticket policies.
American, for example, has copied Delta and Northwest in offering customers a new option on their day of travel. For itinerary changes within three hours of the scheduled departure, travelers can now confirm a seat on an alternate flight for $25, based on availability.
Airlines in the US have been notorious lately at finding ways of saving money.
American Airlines earlier this year even pulled its pillows from domestic routes. That move saved $300,000, the airline said.
Passengers still have blankets.
Report by David Wilkening
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