RSS 2.0 FeedVol. 4, No. 8, August 2008, Tumbling Dice
Grounded
With rising fuels costs cutting into already razor thin profit margins, a number of major commercial airlines in the United States are cutting service to resort destinations like Las Vegas and Reno.
Experts expect air traffic into Las Vegas to drop at least 13 percent by fall. That is in part because of US Airways’ decision to cut service into McCarran by 20 percent. The struggling airline plans to eliminate its red eye flights into Las Vegas.
Airlines are being forced to take a look at flights into cities like Las Vegas where airfares are usually discounted.
“What you’re seeing in Las Vegas and other leisure markets like Orlando is a kind of mild panic setting in because all of a sudden airline seats are evaporating,” said M. Ponder Harrison, managing director of Allegiant Air.
Allegiant is one of the few carriers that is not being decimated by the current state of the economy. The company recently announced plans to add six new jets to its fleet.
In Reno, five daily flights from ExpressJet will be cancelled at the start of September.
ExpressJet served smaller markets including Ontario, California; Tucson, Arizona; Spokane, Washington; and Long Beach, California.
Continental Airlines is canceling its only flight into Reno, and United is reducing service, too.
Experts expect air traffic into Las Vegas to drop at least 13 percent by fall. That is in part because of US Airways’ decision to cut service into McCarran by 20 percent. The struggling airline plans to eliminate its red eye flights into Las Vegas.
Airlines are being forced to take a look at flights into cities like Las Vegas where airfares are usually discounted.
“What you’re seeing in Las Vegas and other leisure markets like Orlando is a kind of mild panic setting in because all of a sudden airline seats are evaporating,” said M. Ponder Harrison, managing director of Allegiant Air.
Allegiant is one of the few carriers that is not being decimated by the current state of the economy. The company recently announced plans to add six new jets to its fleet.
In Reno, five daily flights from ExpressJet will be cancelled at the start of September.
ExpressJet served smaller markets including Ontario, California; Tucson, Arizona; Spokane, Washington; and Long Beach, California.
Continental Airlines is canceling its only flight into Reno, and United is reducing service, too.
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