1. Airfare Hikes Expected in 2012

    American Airlines made big news when it filed for bankruptcy in late November, but American’s struggles are not indicative of the health of the overall airline industry in North America, which was very profitable in 2011. That trend will continue in 2012 and for planners, a combination of increased demand and tighter seat capacity will mean higher fares. It’s business as usual for American during the reorganization process as the company expects to honor tickets and reservations, fly its normal
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    1. We took this action in order to achieve a cost and debt structure that is industry competitive and thereby assure our long-term viability and ability to continue delivering a world-class travel experience for customers.
    2. Given their new-found commitment to profitability, airlines have started to respond with announcements of reduced capacity increases, and in some cases outright cuts. A 5 percent to 6 percent reduction on some routes is not out of the question.
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