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I think one exec at Southwest Airlines pretty much spoke for all the carriers, when he said, “We are concerned about growing evidence of slowing economic growth that would inevitably affect passenger demand.” Translation: if the economy tanks, we’re not going to be flying. Or at least as much. I saw this in an Associated Press article, that went on to say that if you add in the zooming price of jet fuel, you have a slow-growth or no-growth situation. Just look at Southwest: they originally predicted business would grow by 8% next year; that has since been scaled back to half that. There is one growth area though; please continue reading for more on that. |
The growth area for U.S. airlines? International routes.
United, for example, has no plans for any expansion in the U.S., but it will do more flying internationally, about 15% more over the next 3-years. Watch for more overseas expansion from Delta, too, and Continental said its only expansion will be on the international front, and that it will actually shrink its domestic capacity.
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