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SUNDAY, NOVEMBER 22, 2009
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More Cuts Await Slumping Airlines

Delta, AA among carriers who can't cover costs

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(Newser) – As rising oil prices and sluggish demand continued to hammer the airline industry, Delta, American, and several other carriers forecast further cuts to service yesterday, reports the Wall Street Journal. Despite massive reductions in service, CEOs said at an industry meeting that they still aren't covering costs. "Earnings are going to be severely stressed until the economy changes," said Southwest's head honcho.

Leisure travelers will continue to fly during the high-demand summer season, but more lucrative business flyers are staying away. Another factor in declining airline revenues: swine flu, which took a toll on travel to and from Mexico and Asia. Continental estimated that the pandemic cost it $30 million in May, and Delta said the outbreak could knock $150 million off its second-quarter earnings.

Delta Air Lines ticket agents talk shortly after the carrier announced a merger with Northwest Airlines, at Hartsfield-Jackson International Airport in Atlanta.
Delta Air Lines ticket agents talk shortly after the carrier announced a merger with Northwest Airlines, at Hartsfield-Jackson International Airport in Atlanta.   (AP Photo/John Amis, file)
A woman sleeps on a nearly empty American Airlines April flight from Miami to Mexico City.
A woman sleeps on a nearly empty American Airlines April flight from Miami to Mexico City.   (AP Photo/Brennan Linsley)
A Northwest Airlines airplane is pulled up to a Delta gate at the Minneapolis St. Paul International Airport in Minneapolis, Minn.
A Northwest Airlines airplane is pulled up to a Delta gate at the Minneapolis St. Paul International Airport in Minneapolis, Minn.   (AP Photo/Carolyn Kaster)
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5 comments
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Blackbird
Jun 12, 09 9:57 AM CDT
Raise fares. Duh!!!!!!!! Reply
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Mr.C
Jun 13, 09 12:24 AM CDT
not the best approach when some flights are empty
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0
Reader65069154
Jun 12, 09 10:36 AM CDT
Better not let their stock get too low, or Obama will buy them and stop executive bonuses. Reply
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+1
Newser001
Jun 12, 09 5:06 PM CDT
Compound this with questionable reliability of Airbus A330/340 series (973 in service worldwide), it's going to be a tough row to hoe for airlines. I know, I personally won't be flying any A330/340's until their present issues are completely ironed out. That means, if an airline uses A330/340s on any particular run / route I'm interested in, I'll look elsewhere. Reply
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radnip
Jun 17, 09 4:12 AM CDT
I'm assuming the airline executives have already cut their own compensation as much as possible to save money....? Reply
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