HUD Homes Articles | ATLANTA (AP) — A steep drop in fuel prices has not given airlines much reason to celebrate due to a worsening economy that threatens to curb demand for flights heading into next year.
Executives said Wednesday as Delta Air Lines reported a third-quarter loss and American Airlines’ parent posted a small profit that travelers have not seen the last of capacity cuts and fees for services that were once free.
Atlanta-based Delta will scale back international growth plans in the coming months and is prepared to cut more domestic capacity if needed to weather the global financial crisis that has intensified in recent weeks, executives said. American, a unit of Fort Worth, Texas-based AMR Corp., will cut capacity again next year by 6 percent, Chief Executive Gerard Arpey said. The move could help push fares higher if other airlines go along.
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Tags: american airlines parent, delta air lines, worsening economy
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