Major U.S. carriers are planning deep cuts in international capacity, even as fares plummet for popular destinations such as Paris and London. With some London fares dropping below the $100 mark, carriers like United Airlines and American Airlines are reducing capacity by one-quarter to one-third, according to an analysis by Bloomberg News. "International has gone from the bread-and-butter to the weakest part of the business," says Michael Derchin, an analyst at FTN Midwest Research Securities.

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