October 05, 2005

American Airlines, the country's largest air carrier, temporarily has canceled 15 daily round-trip flights from its two largest hubs because of sky-high jet fuel prices. Routes suspended from Dallas/Fort Worth and Chicago's O'Hare serve Atlanta, Newark and Toronto, among other destinations. The move by American to curtail routes is in line with recent service cutbacks and fare hikes at other major airlines, all driven by expensive post-Katrina fuel. "Every $1 increase in the price of a barrel of crude puts another 5,500 airline jobs at risk," said James C. May, president and CEO of the Air Transport Association, in recent Congressional testimony. "The U.S. airline industry drives about $1 trillion in economic activity in the U.S. and 10 million jobs. Ultimately, the harm to the industry caused by Katrina will work its way into the broader economy."

Officials at Frontier Airlines have decided not to resume its daily flight from Denver to New Orleans. Future plans for the route will be determined as the city recovers.