Is it working? By flying less, have airlines managed to raise fares or become profitable?
Profitable? No. And fares are down this year. But it could have been even worse for the airlines. The International Air Transport Association expects North American airlines to lose $1 billion this year, but notes that those airlines lost $5.1 billion last year in part because of rising fuel prices. The trade group said capacity cuts are one factor preventing airlines from losing even more this year. Q: Is there anything that limits how much the airlines can cut? A: Well, parking planes has its costs, too. Even parked planes require some maintenance, and getting them ready to fly again is expensive. Also, most airlines owe money on their planes, either for loans or leases. Corridore said that as long as they can generate enough money from the plane to cover at least some of those payments, they’re often better off flying the plane — even at a loss — rather than parking it.
