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July 25, 2008 7:32:03 AM CDT

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Airlines Fasten Seatbelts for Bumpy Ride

Posted Mar 20, 08 4:02 AM CDT in Business 

(Newser) – America's major airlines are getting ready for tougher times ahead, slashing jobs and cutting back operations. As the Christian Science Monitor reports, soaring fuel prices will inevitably lead to higher ticket prices, which will lead to less passengers—which, in turn, will force airlines to hike fares again to cover flying costs. "The party's over, particularly for leisure travelers," one industry analyst said.

The record-breaking price of fuel is certain to hit the industry hard, but optimists think the cutbacks could be good news for the airlines over the long haul, as it shows an ability to adapt fast that has eluded the sector in the past. Smaller airlines, especially those who lease planes to the biggies, could be the worst hit by a turbulent economy.

Source Christian Science Monitor

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Delta Air Lines on Tuesday, Mar. 18, 2008 said it will offer voluntary severance payouts to roughly 30,000 employees, over half its work force, and cut domestic capacity by an extra 5%.   (AP Photo/Ted S. Warren, file)
Employees work Tuesday, March 18, 2008 at a Delta Air Lines ticket counter at Seattle-Tacoma International Airport in Seattle. D   (AP Photo/Ted S. Warren)
The major airlines are slashing jobs and cutting capacity ahead of an expected recession. The cuts will be bad news for many travelers, especially those who need to fly to smaller cities.   (AP Photo/Tony Gutierrez)
Delta Air Lines jet passes a line of jets waiting to take off on the tarmac at Hartsfield Jackson Atlanta International Airport in this file photo.   (AP Photo/Ric Feld, file)
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oil price  • recession  • airline industry  • air travel  • American Airlines  • United Airlines  • Northwest Airlines  • Continental Airlines  • Delta Airlines  • airline ticket prices


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