Legacy Carriers Cut Capacity By 4.4 Percent Over January 2007

It will be harder to find a seat on a domestic airliner in the new year... as airlines continue to cut capacity, and try to make do with even less.

No surprise, carriers cite high fuel costs as their motivation for cutting back, reports USA Today... though a shift in capacity to more profitable international routes is also to blame.

A study conducted by the paper found the nation's six legacy airlines -- Northwest, American, Continental, Delta, United, and US Airways -- have reduced available seats in January 2008 by 4.4 percent over the same period in 2007. That means fewer routes, fewer planes, and about 72,000 fewer seats each day.

Many of the cuts have come from scaling back unprofitable routes, in the face of rising fuel prices.

"With $90 oil, (airlines) have to really look in the mirror... to see whether the economics still make sense," said research engineer William Swelbar, at MIT's International Center for Air Transportation.

Passengers may also notice the planes they're on are smaller, as more and more routes are handled by regional airlines, as opposed to the mainline fleet. Many airlines have juggled their fleets, to free up larger planes for longer intercontinental routes.

American Airlines spokesman Tim Smith says cutbacks at the Fort Worth-based airline are due to an unusually high number of planes out of service for upgrades. "By summer, we expect to be back to full strength," he says.

Though such cutbacks are merely items on a balance sheet for airlines, the shortages will represent additional hassles and angst for many travelers. Not only will capacity cuts mean less options and packed planes, but fewer planes will be available to make up for delays caused by weather, and other factors.

"If you have a cancellation, you could be sitting there for a couple of days instead of a couple of hours," warned Wayne Shank, deputy executive director of Norfolk International Airport in Virginia.

Low-cost carrier Southwest reduced growth projections for 2008, from earlier estimates of a four percent reduction to five percent. CEO Gary Kelly says the airline is slowing its plans in anticipation of a slowing economy.

"We are concerned about growing evidence of slowing economic growth that would inevitably affect passenger demand, coupled with a surge in energy prices," Kelly said this week.

FMI: www.southwest.com, www.delta.com, www.usairways.com, www.aa.com, www.united.com, www.nwa.com, www.continental.com