Airline Cuts, New Routes Paint Mixed Picture of Global Airline Industry

Despite the addition or re-launch of more than 2,000 routes worldwide, the airline industry continues to cut capacity amid a faltering economy, according to the OAG (Official Airline Guide) fourth-quarter analysis of global airline activity. Figures released last Thursday by OAG paint a mixed picture of the global airline industry, with airlines struggling to find the right balance of cuts and route changes to maximize profits as passenger numbers decline. Carriers worldwide plan to operate half a million fewer flights in October and December than in the same period last year. In addition, more than 200 airports across the globe will cease offering services, and 15 million seats are being cut in Asia alone. Domestic routes in the United States have been the hardest hit, with 265,000 fewer flights (or 21 million fewer seats), which equates to a 59 percent decline from last year. “This decline is a stark reminder that the global economic crisis is taking ...