From Bloomberg.com:U.S. airlines that pared seating capacity about 10% this year may deepen the cuts in 2009 to ensure the industry makes its first profit in a recession.
The pullback at big carriers including Delta Air Lines Inc. and American Airlines may reach 8% and include non-U.S. markets where they’ve been expanding in the absence of discount rivals, according to six analysts surveyed by Bloomberg.
“It’s coming,” said Kevin Crissey, a UBS Securities LLC analyst in New York. “You definitely want to see them out in advance of the difficulties. Err on the side of cutting and if you miss a bit of revenue, so be it. You don’t want to get run over by weak demand.”
New reductions would build on this year’s retrenchment, the U.S. industry’s most sweeping since the Sept. 11 (2001) terrorist attacks.
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