Draconian Cuts In Air Service Could Hurt Business Travel

The U.S. airline industry, under siege from soaring fuel costs, has made a commitment to shrink business by about 10% this fall, mostly eliminating domestic service where major airlines can’t make money. But many carriers haven’t said exactly where cuts will be made when the busy summer travel season is over, leaving some in the business-travel industry in a holding pattern.

For airlines, tighter capacity will make seats more valuable, allowing them to raise ticket prices high enough to cover the cost of jet fuel, which has risen about 80% since last year. That means the new face of air travel is likely to include a higher percentage of business travelers, as some vacationers get priced out of the market.

CNN