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Airlines’ plan to reduce routes may raise fares

Struggling carriers need more revenue
Airline passengers will see fewer nonstop flights, less-convenient travel options, and possibly higher ticket prices and fees in the coming months as major carriers make big capacity cuts this fall season for the second year in a row.
Earnings reports for the April-June quarter this week showed airlines are desperate to raise revenue as they head into their traditionally slow period.
Six of nine major U.S. airlines reported profits in the quarter, but sales were down for most as a result of weak demand and lower fares. For seven U.S. airlines and their regional affiliates, the June yield — or average price a person pays to fly one mile — was almost 19 percent lower than a year earlier, according to the Air Transport Association.
“I think you’re really going to see overall less service, but you’ll still have service,” said Bob Jordan, Southwest Airlines Co.’s executive vice president of strategy and planning.

Entire Article: The Tennessean.com

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