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American Airlines Making Big Capacity Cuts

May 21, 2008 at 10:20 AM | by | ()

American Airlines has just announced that it'll cut capacity by a little more than 10 percent by the end of 2008. That means there will be fewer seats available, and the move will also let AA sell off about 40 planes. (You guessed it: Some troublesome MD-80s are on the auction block.)

Undoubtedly, the carrier hopes that the cuts will lead to higher fares--and lower fuel bills. But that'll only happen if other airlines play along. Deep-pocketed rivals (Virgin America?) may see this as a chance to knock American out of certain markets, though we doubt AA would be foolish enough to cut service on ultra-competitive routes like LAX-JFK, even if they are money-losers.

Oh, and hidden deep within the press release about the capacity cuts is the announcement of a $15 fee for your first checked bag. Something tells us mimicking Ryanair won't keep you on the top of passenger satisfaction surveys.

Related Stories:
· American Will Slash 2008 Capacity, Cut Jobs [Bloomberg]
· American Airlines coverage [Jaunted]

Archived Comments:

Checked Bag Fee

There goes the neighborhood....

it was nice flying you american

no more! even though i never pack a bag, asking $15 for a passenger to check a bag is really awful business. after all, AA is not a LCC or anything. ugh. i can't believe this is even legal.

I hate the fee BUT have a different take on it:


I have absolutely no patience anymore for the "good old" airlines: American, Northwest, Delta, etc. I've been a loyal LCC flyer (domestically, at least) for 2 years now, and stories like this just make me more resolute.