US airlines cutting cheaper flights as jet fuel prices spike again
United, American and Southwest airlines plan to eliminate cheaper, less profitable routes in the coming months due to soaring fuel costs.
Executives from the three carriers confirmed at an investors conference Wednesday they will trim capacity from their schedules as fuel prices remain high. Southwest's finance chief said it is a natural response to persistent expense.
Airlines already cut summer flights and raised baggage fees to absorb higher costs. Fares from June to August were about 25 per cent higher than a year earlier.
Budget travellers are hit hardest; the routes most likely to be cut are off-peak flights on less popular days and times. Discount carrier Spirit Airlines folded in May after a fuel spike, shrinking the budget market further.
Jet fuel hit $US4.56 a gallon Thursday, the highest since May, driven partly by the ongoing Iran conflict.
- 25 per cent higher June-August vs year ago
- Summer fares increase
- $4.56 per gallon
- Jet fuel price Thursday
- United, American, Southwest
- Airlines cutting capacity
- May
- Spirit Airlines closure
Why it mattersFewer budget flights mean travellers hunting cheap fares have fewer choices and may pay significantly more for international and domestic travel.
AustraliaAustralians booking flights to the United States may find fewer discounted options and higher overall fares, though the direct impact on domestic Australian travel is limited.
✓ Claims checked; 1 flagged for review. checked 6 d ago
