Economy replaces fuel as airline concern

DALLAS, Jan. 7 (UPI) -- Industry analysts said U.S. airlines may need to make further cuts in their schedules in 2009 with the economy now eclipsing concerns of rising fuel costs.

Last fall, as airlines cut flight capacities in reaction to fuel costs, research analysts at Boyd Group International predicted U.S. carriers would board 7.8 fewer passengers in 2009 compared with 2008.

However, "as of today, we should be so lucky," the group said, The Dallas Morning News reported Wednesday.

"Since then, the economy and political pictures have completely changed," the group said, increasing its forecast of declining passengers to 10.2 percent.

American Airlines reported its passenger capacity in 2008 was the lowest since 2001, the newspaper said.

Trimmed flight schedules "ultimately seem to have been a good strategy to better position American to deal with a severe economic downturn and less demand for travel," American spokesman Tim Smith said.

"What we, and others, don't know for sure at this time is exactly where or when the bottom of the recession will be," he said. "Accordingly, we're watching the economy as well as demand trends very closely to determine whether any further capacity changes will be necessary in the months ahead."