CAL To Lower Domestic Growth

[Ex737Driver]

Seems like CAL and several other airlines got together this weekend to discuss capacity cuts.



http://biz.yahoo.com/ap/071204/continental_airlines_outlook.html?.v=1


Continental Cuts Capacity Growth Outlook
Tuesday December 4, 8:10 am ET Continental to Focus on Overseas Routes As It Cuts 2008 Capacity Growth Because of Fuel Costs

HOUSTON (AP) -- Continental Airlines Inc. trimmed its capacity growth forecast for 2008 on Monday due to high fuel prices, and said growth will come from overseas routes as it cuts domestic capacity. Continental reduced its 2008 mainline capacity growth estimate range to 2 percent to 3 percent from an earlier forecast of 3 percent to 4 percent. Its 2008 mainline domestic capacity will be down slightly, the carrier said.

The company also said overall November passenger revenue per available seat mile grew between 7 percent and 8 percent from the year-ago period. Mainline passenger revenue per available seat mile grew 7.5 percent to 8.5 percent, Continental said.

Passenger revenue per available seat mile factors in revenue, the number of seats and the distance flown. Analysts have encouraged major airlines to increase profit amid surging fuel costs by hiking fares, squeezing more passengers onto fewer flights and focusing on overseas routes, which have higher profit margins.

 

[wahoo250]

My question is how can you grow with an ailing ATC system? Where are you going to squeeze more planes?

 

[Ex737Driver]

Removal of more RJ's from the problematic areas and replacing them with larger 737's. Begin operating routes with larger turboprops which reduces the number of jet slots.

 

[wahoo250]

yeah I guess so... im just happy I bailed out of the regionals when I did...Its not looking good with the combination of high fuel prices and the troubling atc system. I just can wait when all these VLJ's come out and your stuck behind someone doing .73 on an arrival or whatever speed those things do