Capacity at most major airlines has dropped to its lowest level in nearly two decades, according to this report. Only JetBlue Airways increased its available seats last year, and that was by 0.4%. Unions have generally resisted capacity reductions, but analysts insist they are necessary to maintain a stable airline industry. "Since this business is cyclical, if we keep [capacity] at a low level, during the good times we can make a lot of money and during the bad times just lose a little bit of money," says airline consultant Darryl Jenkins.

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