Travel Weekly reports that this year's airline capacity cuts are deeperthan first anticipated. The nine largest U.S. airlines cut theircapacity 8% in May butreported traffic declines of 9% for the month. Then, when the usualJune bump in traffic failed to materialize, carrier executives saidthey knew they would need to do more cutting after the summer travelingseason.

For example, Delta, which earlier had said it would cut capacity 6% to8% this year, said in June that it planned to trim 10%. American, whoseprevious forecast had called for a 6.5% cut, is now saying it will becloser to 7.5%. Even Southwest (which has announced plans to cut capacity 6% by the end of the year) is cutting back further.

But carriers insist that capacity cuts have to continue because fareincreases are long past due, and airlines simply cannot afford tooperate if prices drop further. 

Some of the higher pricing is already starting to creep back. USAirways this month brought back a domestic fuel surcharge and increasedits fuel surcharge for transatlantic flights.

Starting the secondweek of June, airlines raised their fares $20across the entire system. What’s more, they predicted that furthercapacity cuts were going to quickly push the cost of travel even higher.


Here's some more travel news you can use:

*  J.D. Power & Associates said Tuesday customer satisfaction with theNorth American airline industry has fallen for a third-straight year,hitting a four-year low.  The survey, which questioned more than 12,900 business and leisuretravelers, found the drop was driven by lower satisfaction within-flight services, flight crews and costs and fees.

*  The Wall Street Journal reports that air travelers will soon be able to trace their checked luggage atself-service airport kiosks, in a development typical of airlines’ pushto use computer technology to boost customer service while cuttingcosts.

*  A recent survey by Skytrax reveals that an overwhelming majority of air travelers — 9 in 10 respondents — feel families with children should be seated in a separate section on flights, presumably not in first class.

*  Orbitz.com blogger, John Banta, reports that he's "pretty impressed" with the in-flight Internet access from Delta.  He blogged about his experience today from 30,000 feet.