There is mounting evidence that U.S. carriers are cutting domestic seat capacity. The Chicago Tribune reports that United Airlines, the nation’s second-largest carrier, is winnowing its flight schedule at Chicago O’Hare (ORD), its largest hub.
The Tribune reports that UA (that’s the airline’s code) scheduled 5 percent fewer flights from ORD this year than for the same period a year ago.
Meanwhile, Frontier Airlines, which is a major competitor of United’s at Denver International Airport(DEN), says it is selling four of its Airbus twinjets. That translates into a real curtailment of capacity growth, fewer seats in the air.
Cheapflights recently noted that even high-flying discount airline Southwest is trimming flight frequencies despite the fact that it is in comparatively good financial shape because of a successful fuel-hedging effort.
Make no mistake, it is soaring jet fuel prices that are prompting carriers to cut domestic flights even as they expand international offerings. What’s behind the strategy? International flights are populated often by “high-yield” business travelers. The flights make more money for the carriers. That’s where airlines are shifting their assets (their airplanes). 757s that once took passengers from, say, New York to Houston, are being fitted with range-extending “winglets” and sent off across the Atlantic to reap higher profits.
What does all this mean for you? First, fewer domestic seats in all likelihood. That could affect fares. Second, more international options than ever before.
© Cheapflights Ltd Jerry Chandler
