State of the Airlines

Monday, September 11, 2006

AirTran Backs Off Third Quarter Estimates

AirTran had a pretty good 2nd quarter (ok it was the best one in their entier 13 year existance) and they put up record numbers in August. Despite all of that they are revising their numbers down for the 3rd quarter of this year. Even more, they are looking to reduce capacity in 2007-2008 based on what they view as softening demand. This seems to be on par with expectations that the industry, as a whole, needs to keep capacity constrained to maintain some leverage on pricing.
All of this makes Northwest Airlines recent recall of their entire flight attendant work force seem a little out of place to me.

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