3/2/2011

AMR, the parent company of American Airlines, had planned to increase available seats on American and American Eagle by 4.3% but decided to pull back a bit. The company cited an increasing cost of jet fuel. "If you boost prices to cover higher fuel costs, that is almost certainly going to reduce the level of demand," said David Swierenga, president of AeroEcon. "It's just good economics to tailor your capacity to the expected lower level of demand."

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