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Airlines trimming sails, holding sales

The airlines' traffic, as we've been reporting, has taken a sharp dip as the economy has worsened. International carriers are cutting capacity to Europe and Asia. Delta, now the world's largest carrier since acquiring Northwest, is the only one to have detailed its cuts at the JP Morgan airline outlook conference in New York, but others provided hints, according to a Chicago Tribune story.

From Europe and Asia, Lufthansa and Cathay Pacific also have reported losses.

Southwest, after years of steady growth, will fly 4 percent fewer miles this year and expects to reduce staffing through attrition. The airline has never had a layoff but it could even come to that if the traffic picture doesn't improve. Still, trying to stimulate business, Southwest is offering more discount fares, which other carriers will have to match where they compete.