Airlines Look For Savings As Fuel Costs Rise

[phantom power]

The need for US airlines to control costs is greater than ever with losses creeping back onto balance sheets and shares slipping, but carriers are simply running out of fat to trim after years of restructuring.

The main culprit undercutting profits is high fuel prices. But overall US economic weakness is threatening to erode travel demand and make it more difficult to generate revenues.

(...)

"Now they're getting to the point where they're cutting into things they shouldn't cut," airline consultant Michael Boyd, referring to the airline industry in general. "Any major slashes, they're just not there any more."

In fact, carriers must brace for even higher costs in the coming year as unions demand higher wages and benefits after their sacrifices of the last six years, he said.

http://news.airwise.com/story/view/1202724660.html

[tanyev]

1. How long before they remove all the seats in economy?

It wouldn't cost very much to install a bunch of hand-hold straps.

[phantom power]

2. There's just going to be fewer flights. Reduced service. More mergers.

More people traveling less often. Or driving. Or taking the bus. Maybe the trains will make a comeback, although clearly nobody in charge is keeping up with current events, since they're still busy killing Amtrak's funding instead of trying to revive it.

[DCKit]

3. I realize it would be pretty drastic...

but how about a move from scheduled flights to full flights? The airlines know what the demand is, so why not scale back service to fly with 80% or better occupancy?

[speedbird]

4. airlines could sell carbon offsets ,,,

representing the carbon saved
by cancelling flights

[NNadir]

5. They need to use some of those really neat wind powered aircraft.

It's all very simple really.