Airlines moved quickly to cut capacity as demand for travel tumbled with the outbreak of war in Iraq. North American airlines have reduced their April schedules by between 6% and 15%, and some have cut jobs, but trimming international services means there has been little in the way of aircraft parkings.
The largest cuts came at Air Canada - a 15% reduction in capacity, with 3,600 jobs to go by year-end - and Northwest Airlines - 4,900 layoffs, a 12% capacity cut and the parking of 20 aircraft. Both airlines blame the outbreak of war, but unions at Northwest question the scale of the cutbacks, the largest among US carriers. Continental Airlines cut 1,200 jobs and reduced transatlantic and transpacific services. Delta Air Lines reduced systemwide capacity by 12%.
US Airways, which hoped to emerge from Chapter 11 bankruptcy protection at the end of March, cut capacity by 5%. United Airlines, also in bankruptcy protection, reduced its schedule by 8%, cutting 104 domestic and 20 international services, and placed some employees on temporary unpaid leave, warning that layoffs may follow. American Airlines, fighting to avoid a bankruptcy filing, cut European and Latin American services by 6%.
In Europe, British Airways announced an overall capacity reduction of 4% for April and May. Transatlantic capacity was reduced 6% and flying to the Middle East was cut 26%, with services to Kuwait suspended. The carrier also accelerated its plan to cut 3,000 jobs by March next year to September this year.
Lufthansa cut capacity to Africa, the Americas and Asia and grounded seven aircraft, 10% of its long-haul fleet. Flights to Dammam in Saudi Arabia and Kuwait City were suspended. Air France cut capacity by 7% while maintaining services to all destinations, but postponed delivery of seven Airbus A318s and A320s.
Source: Flight International
