Many airlines are culling fleets, dropping flights, charging for checked bags and adding surcharges to ticket prices to offset fuel outlays.
To some extent, the plan has worked: Delta has resumed seasonal services to New York this summer, and Air Canada will serve Athens using its new low-cost outfit, Air Canada Rouge, rather than dropping flights altogether.As Gulliver reluctantly departed the Greek sunshine this week, there were fewer than a dozen planes on the tarmac, and no queue for take-off.
Several airlines have dropped flights to Asia in response to a drop-off in passengers traveling to countries experiencing outbreaks of severe acute respiratory syndrome, or SARS.
Austin Reid, chief executive of bmi British Midland, reckons the world's airlines will lose $7.5 billion this year on top of last year's $11 billion.Back in September, Europe's airlines grounded aircraft, dropped flights and started cutting staff costs.
United Express has also dropped or will soon drop flights between Portland, Ore., and Eureka, Calif., and Pasco, Wash.; between Seattle and Eugene, Ore . and between Chicago O'Hare airport and Birmingham, Ala., and Bountville, Tenn.
As the mounting threats were disclosed, a leaked memo from an official with the federal air marshal service cited budgetary concerns in urging regional offices to drop flights requiring overnight stays.
For instance, BA will drop flights to Basle and instead market seats block-booked at wholesale prices on Crossair, a Swiss airline.Danger aheadThe risks in such a strategy start with the fear that BA is handing business to its competitors, which will grow bigger and gain enough efficiency to maintain profits even with low-margin revenues.
United has cut 4,800 flights this summer and is dropping 2,000 flights next month.
I think the drop flight two weeks ago, which went beautifully, I think it made people sit up and realize this is really reality".
Prices are dropping fast: flights to Costa Rica with the new budget carriers cost about $150 less than with the older operators (based on a search of flights next week).As the middle class gets more access to credit, demand for such hops is likely to increase more still, meaning more flights and more competition.
