Airlines make cuts in effort to survive economic slump
— -- The news from the two U.S. carriers Tuesday came the same day the International Air Transport Association reported that the airline industry globally suffered at least $6 billion in losses in the first six months of the year. In June, the association had predicted the industry would lose $9 billion for the entire year.
With many travelers staying put as the recession lingers, carriers are cutting costs and flights to try to stay solvent.
"They're trying to anticipate declines in demand so they can keep airplanes full and keep airfares up," says Mike Boyd, president of the Boyd Group International that does forecasting for airports and the airline industry.
September schedules show domestic capacity, measured by seats, down 5% compared with a year ago and down 12% compared with 2007, a USA TODAY analysis of Official Airline Guide data shows.
American Airlines said it would slash 921 flight attendant jobs starting Oct. 1, largely because it has reduced its number of flights as passenger demand has fallen.
American's traffic is down more than 9% so far this year and its capacity is down roughly 8%.
American had estimated in June that it would need to cut 1,200 positions.
The airline said it was able to pare that original number because it needs to beef up staffing in winter months, though it still had to cut positions through a combination of furloughs, and voluntary and involuntary leaves.
Meanwhile, Southwest said it would trim its schedule at the start of next year to try to match it to lower demand.
It will halt non-stop flights between Albuquerque and Portland, Ore., and between Manchester, N.H., and Phoenix in January, re-starting the service in February. Direct flights between Kansas City, Mo., and Seattle also will stop in January and resume in May.
