9/18/2008

The merger trend among European airlines should help achieve cost reductions, according to The Wall Street Journal, but consolidation won't automatically lead to the capacity cuts that are needed for long-term stability. European passenger traffic was up 1% in July compared to the year-ago period, while capacity increased 4% over the same time frame. But despite such statistics, airlines big and small have announced they'll add more seats this winter, putting further pressure on profits.

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