Here we go again.
Following a whopping $340 million loss in the fourth quarter of 2008, American announced it will take fewer new planes in 2009 and reduce service overall. The cutback in new planes is due largely to manufacturing delays at Boeing, but American has also decided not to backfill the routes those new planes were supposed to fly. The end result is a projected 6.5 percent drop in capacity, a slightly bigger cut than previously expected.
With the economy taking a big bite out of the industry’s business, last year’s massive cuts (to combat record-high fuel prices) are beginning to look very wise. American, along with most other airlines, cut service by more than 10 percent for the second half of 2008, which put the airline in a better place when demand dropped off late last year.
But American’s decision to expand its service reductions sets an ominous tone for 2009, because last year’s cuts haven’t kept up with plummeting demand. More airlines may be forced to broaden the capacity cuts put in effect over the past few months, and carry those reduced schedules well into the coming year.
We hand-pick everything we recommend and select items through testing and reviews. Some products are sent to us free of charge with no incentive to offer a favorable review. We offer our unbiased opinions and do not accept compensation to review products. All items are in stock and prices are accurate at the time of publication. If you buy something through our links, we may earn a commission.
Top Fares From
Today's Top Travel Deals
Brought to you by ShermansTravel
Kenya: 14-Night Tour, Incl. Tanzania &...
smarTours
vacation
$7125+
7-Night Caribbean Round-Trip Cruise From Orlando:...
Norwegian Cruise Line
cruise
$739+
Ohio: Daily Car Rentals from Cincinnati
85OFF.com
Car Rental
$19+